PV Investment Research Articles

Stumbling blocks for solar social enterprises: Unveiling the barriers facing enterprises serving the base of the pyramid solar market in Tanzania

Despite the initially favourable environment for solar PV investments, the relevant literature increasingly emphasizes the emerging barriers that threaten the growth and sustainability of solar PV enterprises. This has led scholars to examine challenges in East Africa's solar energy subsector, with a focus on the evolving institutional environment. However, we discovered that, within the ongoing discourse surrounding this sector, relatively limited scholarly attention has been given to solar energy service social enterprises (SEs). In response to this gap, we have conducted a specific study to explore the barriers facing the performance of solar energy service SEs in Tanzania. Drawing on institutional theory, we unveil the formative, normative and cognitive factors that influence the performance of SEs. Data were gathered through semi-structured interviews with ten solar SEs in Tanzania, supplemented by a review of the literature. The study revealed that regulatory barriers such as an unfavourable policy environment, grid arrival regulations, uncertainties over tariff policies, the prevalence of counterfeit products and limited access to finance and capital, as well as normative constraints such as limited partnerships and networking, are key barriers to operating at the base of the pyramid (BoP). The study underscores the need for collaborative efforts between the government, investors and SEs to create an enabling environment to continue serving the BoP market.

Assessing potential for policy feedback from renewable energy incentive programs

Climate advocates look optimistically to policy feedback as a mechanism for locking-in a decarbonization policy trajectory, but little research has examined whether and how climate legislation creates constituencies that could provide future political support. This article focuses on incentive programs supporting investment in solar PV and the potential for policy feedback through participating households. We first develop a framework of feedback potential that considers the volume and partisanship of incentive program beneficiaries and their distribution across electoral districts. We then apply the framework to New York State’s solar PV incentive program, which enabled over 140,000 households to install solar PV. We find that the number of solar PV incentive beneficiaries is positively associated with Republican vote share, suggesting potential for a strong pro-solar constituency in the pivotal, Republican-led districts. Within electoral districts, however, beneficiaries skew Democratic, raising questions about the direction of policy feedback. The results carry implications for the kind of politics that incentives in the Inflation Reduction Act may set in motion in the coming years.

Rooftop PV Potential Determined by Backward Ray Tracing: A Case Study for the German Regions of Berlin, Cologne, and Hanover

ABSTRACTPhotovoltaics (PV) on building rooftops is a major contributor to the decarbonization of energy systems. We simulate the PV energy yield potential for 2.5 million individual roofs in three German regions. We cumulate the results for each single roof to calculate the cost‐potential curves for the three cities Berlin, Cologne, and Hanover. These curves give the amount of electricity that can be generated at less than a given cost per kWh. We find that these curves have the shape of a hockey stick. Neglecting the dependence of PV investment on building size and thus on the system sizes causes largely different cost‐potential curves that differ by 11%–18% for flat roofs due to their heterogeneous building size distribution. The cost‐potential curves of the three cities are very similar when appropriately normalized, for example, by the local solar irradiation and the settlement area of the city, despite substantial variations in population density. This allows for an extrapolation of our results. For Germany, we reveal an upper limit for the total electricity generation from rooftop PV of 762 TWh/a with cost as low as 6.9 ct/kWh without accounting for area losses due to chimneys, air conditioning systems, and so forth. We estimate the actual potential to be at least half of that figure.

System-wide benefits of temporal alignment of wholesale–retail electricity prices

Exposing residential consumers to real-time pricing (RTP) can yield significant efficiency gains, but may also pose challenges due to the inherent complexity. Using an extensive spectrum of temporal granularities for retail electricity pricing, we analyze to what extent these capture the benefits of RTP while concurrently considering the influence of three distribution tariff types in distorting the pricing signal. Via a mixed complementarity model, we consider both operational and investment decisions at retail as well as wholesale levels, accounting for their interdependencies. Our analysis reveals three key findings. Firstly, we find that decreasing temporal granularity of retail electricity prices increases total system cost due to an increasingly inefficient generation mix, however, three-hourly or six-hourly pricing can approximate RTP benefits. Secondly, decreasing temporal granularity of retail electricity prices raises average offtake and lowers average injection prices for consumers due to changes in wholesale market prices as well as consumption patterns of consumers. Thirdly, capacity-based tariffs reduce system offtake peaks and associated price increases by incentivizing battery discharge during peak consumption while volumetric tariffs, over-incentivizing solar PV investments, result in highest offtake prices and injection peaks.

Exploiting green energy potential via FinTech: The role of DLT-based crowdfunding in PV and ESS investments

This article explores the interplay of green energy potential and innovative financial technology (FinTech). To achieve this, an in-depth study on the technological, economic, and environmental aspects of residential-scale solar energy and storage investments was performed. As the first part of the study, residential-scale solar energy and associated energy storage investments were modeled in the assessed countries. As the next step, the effects of Distributed Ledger Technology (DLT) enabled crowdfunding on the modeled investments were highlighted with a Proof-of-Concept (PoC) DLT-enabled investment tool. As the last step, the Life Cycle Assessments (LCAs) of the investments were carried out for each of the assessed countries in order to provide better investment decisions to various investors. The results of this research indicate that with the integration of novel Fintech tools, the Levelized Cost of Storage (LCOS) values of the assessed investments may be reduced by up to 58%. Meanwhile, the LCA results highlighted that solar silicon production and battery cell manufacturing have the highest LCA results, accounting for 19.1 and 63.8 kgCO2eq/kWh respectively. Meanwhile, the transportation sector had an emission of 9 kgCO2eq/kWh. Thus, with cleaner manufacturing and transportation, the emissions from PV and ESS investments may be reduced drastically.

An Assessment of the Economic Viability of Delivering Solar PV Rooftop as a Service to Strengthen Business Investment in the Residential and Commercial Sectors

The creation of significant power from PV technology has resulted from the growth of the solar PV business and industry and the lowering of PV costs. The electricity market is open broader for PV and other involved device technology. The goal of cumulative capacity drives Thailand's solar PV investment compass. The learning curve projection shows that the prediction's learning curve reliability can provide a clearer view for PV investment and policymakers. This paper shows the creation of the opportunity for the solar PV rooftop as a service (RaaS) business model, designed for four customers: residential and commercial, with small, medium, and large scales depending on their electricity consumption. The result reveals that if no grid is allowed, the medium- and large-scale are more likely to be feasible as they show grid parity. With the PV cost reduction trend, all the customers are economically viable in the grid sale allowed. Besides that, the electricity tariff rate from the grid also significantly impacts the PV rooftop investment and customer decision-making.

New markets for local, renewable, or affordable energy? A segmentation analysis to identify consumer preferences for decentralized energy markets

Local Energy Markets (LEMs) allow direct citizen involvement in energy production and trading. A study surveyed 636 Swiss electricity consumers using choice-based conjoint analysis to explore preferences for various LEM characteristics. Three consumer segments emerged: 'Renewable energy enthusiasts' (42 %), interested in energy mix and community PV investment; 'Price sensitives' (30 %), driven mainly by costs; and 'Uninvolved' (28 %), focused on energy mix but hesitant about PV investment. Demographic and psychological variables helped characterize these segments, suggesting tailored communication strategies to boost participation in future energy markets. Communication strategies should focus on ‘Renewable energy enthusiasts’ segment and should emphasize environmental benefits and community engagement to leverage their high motivation for involvement.

Interaction Between Social Acceptance and Humanistic Green Techno Educational Capability in Supporting Environmentally Friendly Solar Energy Investments in Jember District

The development of a dynamic energy system requires adjustments to energy policies that are in line with and receive strong support from human resources in government and society. One of the most effective and sustainable policies is encouraging investment in environmentally friendly infrastructure, such as renewable energy. The potential of solar energy, which is a renewable energy source, offers a solution to the energy crisis experienced by developing countries. In this research, a new concept is proposed which is known as "the interaction between social acceptance and investment readiness (SONVES) as a mediator of green_ Techno Humanistic Education Capability towards solar PV investment readiness". This aims to determine the effect of increasing social acceptance, technology acceptance, environmental awareness, and economic value which are expected to have a positive effect on investment readiness. This research model uses a quantitative descriptive approach to describe the situation objectively using data in the form of numbers. overall investment readiness.

Conceptualizing the real and perceived risk factors for household solar PV investment on Energy Transition agenda

Conceptualizing the real and perceived risk factors for household solar PV investment on Energy Transition agenda

Solar photovoltaic systems for the Short Sea Shipping’s compliance with decarbonization regulations in the European Union

Carbon Intensity Indicator (CII) regulation came into force In January 2023 as one of the main International Maritime Organization’s measures to reduce Greenhouse Gas (GHG). Short Sea Shipping (SSS) demand significant electricity supply by reaching up to 30% of total on-board power. This paper addresses SSS-fleet compliance with CII regulation, Market and Goal-Based Measures imposed by the European Union (EU) through solar photovoltaic systems (PV) for on-board electricity production. The paper analyses the techno-economic feasibility of this solution from the shipowners’ standpoint in the medium-term. To meet this aim, a SSS Car-carrier between Canary Islands and Iberian Peninsula is assessed by simulating PV performance, vessel’s technical implications, and economic consequences of GHG mitigation in the context of the EU. The results reveal that PV reduces fuel consumption for electricity generation by 15.5% by reducing the total CO2 emissions by 3.38%. Although this improvement is not substantial enough to change the CII score of the vessel, the Internal Rate of Return of the PV investment achieved 55% for 10 years with three years as payback period. This fact along with the robustness of the results achieved suggest PV system is a promising mitigation option for SSS vessels.

Technical, economic and environmental assessment towards the sustainable goals of photovoltaic systems

Goal 7 of Agenda 2030 is focused on renewable energy. This study proposes a multi-criteria and multi-disciplinary methodology for analysing different incentive scenarios in Italy according to the varying conditions of system installation and the chosen photovoltaic technology (PV). The method is based on three key factors: energy, economic, and life cycle assessment of the photovoltaic system to achieve the improvement of the energy performance through technical and financial solutions that suit the existing buildings and strategies to limit environmental impacts. For the validation of the methodology was chosen the engineering campus of the University of L'Aquila, Italy, was chosen since the energy retrofit of public buildings must be dealt with by considering numerous parameters. These include economic constraints related to the public budget; technical constraints, as not all the solutions on the market, are compatible with the existing building body; and social constraints, as public administrations set an example for their communities and pioneer positive actions inspired by sustainability from every standpoint. The study showed as for defining the optimal scenario a multi-criteria approach is necessary and that a decision based on only technical and economic evaluations can not conduct to an optimal scenario selection. Furthermore, it has shown how subsidies are fundamental for the profitability of PV investments, which, although considered a renewable energy source, can derive non-negligible environmental impacts from these investments. Thus, the methodology adopted, which can be exported to other contexts, allows policy-makers choices to be weighed from many points of view.

PV Sizing and Investment Support Tool for Household Installations: A Case Study for Croatia

In the wake of the green energy transition, the European Union is using solar energy as its focal point. Different supporting development schemes aim to bring energy closer to the hands of the citizens. In various European countries, the integration of solar energy in households has made significant steps forward, but in Croatia, the process has been lagging, with just humble results of installed rooftop solar capacity being integrated in recent years. The uptake of this process is happening, and it is important to facilitate the process to make it more efficient. In this regard, there are two main aspects covered in this paper. The first deals with the problem by disseminating the statistics and findings of the online tool accessible to the public, which aims to widely promote the integration of solar using the provision of precise and on-the-spot information for all interested citizens. The second aspect deals with the simulation segment, aiming to provide deeper insights into the solar integration process and its legal and administrative framework based on the insights gathered from the PV sizing optimization tool expanded with additional multi-scenario simulation analysis.

When do circular business models resolve barriers to residential solar PV adoption? Evidence from survey data in flanders

Solar energy is an important renewable energy source to support a decarbonization of our energy mix. Although the uptake of solar PV surged in the last decade, many households face significant barriers to invest in solar energy. Circular business models may mitigate the upcoming PV waste problem and increase energy and resource independence. In this paper, we investigate when circular business models may also lower barriers for residential PV-adoption. We use survey data (n = 3996) from Flanders (Belgium), controlling for personal and housing characteristics, and institutional trust parameters. Our results suggest that upfront costs, a lack of trust in governments, technological obsolescence, and a perceived lack of profitability constitute the main barriers for residential solar PV investments. Circular business models, including product service systems and PV reuse, appear to resolve only the former barrier. Our results show the importance of trust in service providers and technology, and the complex relationship between trust in governments and solar PV investments. We recommend policymakers to coordinate energy, environmental, and social policy initiatives aimed at enhancing solar PV adoption in a sustainable manner. Moreover, we recommend to invest in legal complementarity and legal certainty, enabling households to regain trust to adopt new and sustainable technologies.

Innovators, followers and laggards in home solar PV: Factors driving diffusion in Finland

Generating electricity from solar energy is a way for households to participate in the ongoing transition to decarbonized and more decentralized energy systems. A large empirical literature has examined the drivers and barriers associated with household solar PV adoption. An emerging strand of this literature investigates what distinguishes earlier adopters from later adopters and non-adopters. However, there is yet limited understanding of the differences between earlier and later adopters, as few papers have applied formal statistical models to compare different customer segments. The present study addresses this gap. We examine how the factors that influence household solar PV choices differ between earlier adopters, potential adopters – households that have considered installing solar PV but have not yet done so – and non-adopters. We analyze these choices using rich data from a household-level survey conducted in Finland. The findings show that the adoption of solar PV is linked to a multitude of socio-demographic and financial factors and personal motivations. There are clear differences in the motives and perceptions of adopters, potential adopters, and non-adopters. Accounting for such differences between customer segments will help to better design and target public policy instruments and marketing campaigns that aim to incentivize and nudge households toward solar PV investments.

The rebound effect of solar panel adoption: Evidence from Dutch households

Households adopt solar panels for different reasons, but usually with a reduced electricity bill in mind. However, the access to solar power at near zero marginal costs may well induce rebound effects which shift households’ demand curve and distort the net effects of solar PV investments. By analyzing high frequency data on household electricity consumption and production, we document solar PV rebound effect of 7.7 percent, a result that is robust to different sample and model specifications. We also find that households shift their consumption to the time periods when solar electricity production is higher. The solar PV rebound effect shows heterogeneity across time and production level, with higher rebound effects during seasons characterized by higher solar irradiance.

Circular economy strategies as enablers for solar PV adoption in organizational market segments

While the uptake of solar energy has been a success in recent years, PV panels will cause an increasing waste problem in the coming decades. At the same time, it is important to further stimulate investments in solar energy solutions to reach climate ambitions and the Sustainable Development Goals. In this paper, we investigate when circular economy strategies and business models can enable solar energy investments while mitigating its waste problem. We use focus group data from Flanders (Belgium) to address the demand side of different market segments outside the dominant residential market of homeowners. These markets have in common that they are governed or mediated by organizations and contain business-to-business and business-to-government features. Our results show that organizational solar PV investments are mainly driven by lower energy costs, independence, and secured access to energy, and that the uptake of circular solar solutions mainly depends on a viable business case. In most cases, a lack of market development and organizational boundary conditions limit the enabling potential of circular solar options. Given the current energy crisis and challenges stemming from the electrification of mobility, we recommend policy makers to invest in regulatory frameworks that support the implementation of innovative data technologies that enable both improved circularity outcomes and lower operational expenditures.

Economic Impact of 300 KWp PV Rooftop Penetration on Soy Sauce Companies

One of the greatest potentials of renewable energy is solar energy, which can produce electricity. The industry welcomed this to utilize solar energy to produce electricity through a PV rooftop system. The advantage of PV rooftops in producing electrical energy is in terms of investment costs that can eliminate the land component because it utilizes the roof of an industrial building as a place for PV rooftops to produce electrical energy. Soy Sauce companies, as one of the industries engaged in food, can utilize a PV rooftop with 300 kWp to produce electricity. The electrical energy produced by the PV rooftop can reduce 17,23% of the total electrical energy consumed by soy sauce companies in one day from PT. PLN electrical energy sources. A rooftop PV investment capacity of 300 kWp has a payback period of 12 years with an IRR value of 7% and a lifetime of using PV rooftop for 25 years.

Reducing carbon footprint by replacing generators with solar PV systems: a contingent valuation study in Lagos, Nigeria

AbstractNigeria is endowed with abundant sunshine year-round; thus, solar PV would solve the environmental problems associated with petrol-powered generators. However, it is unclear whether households are willing to transition. Thus, we analyze households’ willingness to pay (WTP) for solar PV under four scenarios: (i) WTP when a solar PV is complemented with a generator, (ii) WTP when a solar PV completely displaces a generator, (iii) WTP when a solar PV is complemented with a generator, plus a subsidy, and (iv) WTP when a solar PV completely displaces a generator, given a subsidy. We find that WTP for solar PV is higher when it can displace generators completely. Subsidy plus monthly rather than upfront payment would scale up the adoption of solar PV by about 6 per cent. Furthermore, the cost benefit analysis results show that solar PV investment is profitable. Thus, there is a need to implement policies aimed at scaling up the energy transition.

Optimizing design and performance assessment of a community-scale hybrid power system with distributed renewable energy and flexible demand response

Modern urban energy system with renewable energy sources has become an effective solution to enhance energy security and promote carbon neutrality. This paper presents a holistic framework for the optimal design and management of such a flexible hybrid power system at the community scale. This framework integrates the potential assessment of rooftop PV and waste biomass, a general optimization approach with multi-perspective performance evaluation, as well as the impacts analysis of energy policy, demand response, and uncertain economic parameters. The proposed framework was applied to a small neighborhood area in Beijing, China. It was found that 100% utilization of available biomass and rooftop PV would satisfy 73% of local electricity demand with the levelized cost of electricity of 0.1030 $/kWh and the embodied carbon emission of 0.5416 kg/kWh. The flexible shiftable load could lead to lower peak load and less electricity supply cost, and help to match the energy demand with the dispatchable rooftop PV output. However, the economic benefits caused by implementing demand response are more obvious than the environmental benefits. Furthermore, a higher electricity tariff and lower capital cost of PV technology would facilitate the investment in rooftop PV and achieve carbon emission reduction targets.

How prices guide investment decisions under net purchasing — An empirical analysis on the impact of network tariffs on residential PV

Within the regulation of net purchasing, investment incentives for residential PV depend on the remuneration for grid feed-in and the consumption costs that households can save by self-consumption. Network tariffs constitute a substantial part of these consumption costs. We use postcode-level data for Germany between 2009 and 2017 and exploit the regional heterogeneity of network tariffs to investigate whether they encourage to invest in PV installations and evaluate how the nonlinear tariff structure impacts residential PV adoption. Our results show that network tariffs do impact PV adoption. The effect has increased in recent years when self-consumption has become financially more attractive, and the results confirm the expectation that PV investments are driven by the volumetric tariff. Policy reforms that alter the share between the price components are, thus, likely to affect residential PV adoption. Further, with self-consumption becoming a key incentive, price signals can effectively support the coordination of electricity demand and supply in Germany.