Household energy consumption and the financial feasibility of self-consumption through photovoltaic panels in Spain

Abstract

Energy consumption is one of the main costs faced by households, both financially and environmentally. This article analyses the energy consumption of Spanish households and the cost of installing solar panels in order to determine the potential of this form of energy production on a household level. The results show that households with a larger number of members have a higher total consumption but a lower consumption per person. The composition of the household is therefore a key determinant of the potential savings from solar panels. This alternative is financially viable, as the unit price paid for energy in these households is between €0.28 and €0.29 per kilowatt-hour (kWh), while the average cost per kWh obtained from the panels is between €0.15 and €0.21. However, the current public subsidies for the installation of solar panels in Spain are inaccessible to 68% of the country’s households, and there are difficulties in the distribution of energy in neighbouring communities. In other words, although in financial terms home PV self-consumption is a financially viable option, the inability to obtaining subsidies makes the initial investment a major barrier for many households.