Complete Procedure for the Economic, Financial and Cost-Competitiveness of Photovoltaic Systems with Self-Consumption

Abstract

Nowadays, the integration of photovoltaic (PV) systems into the grid involves new and competitive ways to realize this. Thus, it is necessary to define procedures that not only include energy calculations but also incorporate economic and funding feasibility features. According to the literature review, there are numerous tools that are available to carry out a profitability analysis of a photovoltaic system. However, certain shortcomings have been identified, either in the definition of the economic and financial scenarios or in the results obtained, as they do not provide all the necessary information, do not use all the most common economic criteria, or in some cases the complexity and training requirements for their correct implementation may discourage their use. Therefore, in this paper a complete procedure that can be used as a preliminary decision tool prior to the design of an in-depth PV self-consumption system is proposed. Realistic input data makes it possible to not only obtain results for common economic and financial feasibility criteria (Net Present Value, Internal Rate of Return, Discounted Pay-Back Time and Net Cash Balance), but it also allow for a cost-competitiveness evaluation based on the Levelised Cost of Electricity (LCOE). The novel concept of the direct cost of PV self-consumed electricity is also introduced.