The value of aesthetics in the BIPV roof products segment: a multiperspective study under European market conditions

Abstract

ABSTRACT On account of supportive policies and improving technologies, Building Integrated Photovoltaics (BIPV) is gaining attention. Although the BIPV offer is costly, the customers are willing to accept premium rates for more visually appealing systems. The objective of this paper is to estimate and confront the actual market costs of the esthetics offered by the market and to understand the perceived value of esthetic premiums on the customer end. The topic is approached by employing a case study to assess the cost of investment, to learn the economic benefit throughout the entire system’s life cycle and to discern its impact on the value of the residence. The results indicate that from the system’s cost perspective, the current premium reaches over 80% of the Building Applied PV (BAPV) while maintenance plays an important role. Although the Net Present Values (NPV) are positive for both: BIPV and mainstream PV, the Internal Rate of Return (IRR)’s difference reaches 7%. The BIPV’s 0.14Euro/kWh of Levelized Cost of Electricity (LCOE) stay below the current market standards so the economic benefits brought by the system are conceivably assured. It has been found that the value of esthetics premium is priced similarly for both the manufacturer and customer. In the latter stages of the BIPV industry’s evolution, the suppliers focus on the functionality of the products, their complex installations, and expensive maintenance. These elements have negative impacts on the esthetics premium value and hinder its acceptance.