An Economic Comparison of Planning Decisions Aimed at Stimulation of Photovoltaic Roof Prosumers vs. Energy Communities

Abstract

The share of photovoltaic installations in the residential sector and industry has significantly increased during the recent years. To support this tendency, energy utilities and national governments are looking for novel flexible solutions. One of the promising approaches is creation of energy communities, which can reduce the electricity costs and create conditions for investment in local renewable generation for end users with limited capital. This article aims to analyse the profitability of individual photovoltaic installations versus energy communities. Based on the obtained results, the ways to reduce the cost of energy for prosumers and to choose the most feasible development options for a future power grid are suggested. This study is focused on the particular case of the solar communities and their development in Latvia. The profitability of net metering systems has been also considered. The article demonstrates that energy communities can generate more additional income for the participants, compared to the sum of incomes of individual prosumers with local photovoltaic generation. Such promising results should encourage ordinary consumers to participate in projects of energy communities. The results of this study could be adopted by decision-makers such as government agencies, companies, PV owners, and they are recommended for potential investors for the development of solar communities.