Green Tariff And Investment To Solar Power Plant

Abstract

The paper substantiates the need for a transition to renewable energy in low-income countries. Authors make the analysis of the state of traditional energy sectors. It has also been proven that the implementation of “Green” Tariffs is a necessary step that stimulates investment activity in wind and solar energy. The analysis of the payback period and profitability from the operation of a solar power plant (SPP) is carried out at given values of the annual amount of energy consumed by the household and the volume of investment. The option of a free connection to electric networks is considered reasonable, when the excess consumption over generation is paid at the existing network tariff, and excess generation at the Green tariff. The efficiency of conversion of solar radiation for the geographical latitudes of Ukraine is assessed. Optimization tasks have been formulated to minimize the cost of installing facilities that provide their own energy consumption within budgetary constraints; minimization of the payback period of equipment; minimizing the cost of 1 kWh of the equipment operational life; maximization of discounted income over the life of the equipment. The minimum payback period for the SPP equipment is determined. It is proved that the operational characteristics of SPP (payback period, profit per unit of investment) for a given volume of consumption grow together with the rise in investments. To increase solar generation, it is necessary to increase restrictions on the generation level for households.