Analysis of economic viability of photovoltaic systems in residential areas considering incentive policies (#202)
Read ArticleDate of Conference
July 17-19, 2024
Published In
"Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0."
Location of Conference
Costa Rica
Authors
Muñoz Vara, Saúl
Puma Chávez, José Luis
Obispo Vásquez, Angel Eduardo
Villavicencio Gastelu, Joel
Abstract
In recent decades, the diffusion of residential photovoltaic systems has been observed in different countries. In most cases, this diffusion occurred because of the implementation of incentive policies. This study presents a methodology for determining economic viability by considering different incentive policies. Viability is analyzed based on economic indicators, such as NPV, IRR, Payback, and LCOE. The results indicate that the installation project of a photovoltaic system located in the city of Lima, Peru, is unviable under the current incentive conditions, resulting in an 18-year payback. However, considering more effective incentive policies made the use of PV systems viable, resulting in a payback period of up to eight years.