Tables for the estimation of the internal rate of return of photovoltaic grid-connected systems

• DOI: 10.1016/j.rser.2005.02.002
• Publication Date: 2005-04-22T13:32:33Z
• Authors: D.L. Talavera; G. Nofuentes; J. Aguilera; M. Fuentes
• Keywords: 0202 electrical engineering, electronic engineering, information engineering; 02 engineering and technology; 7. Clean energy

A continuous decrease trend in PV costs together with a wide variety of supporting measures have turned photovoltaic grid-connected systems (PVGCS) into a profitable investment when some economic conditions are met. The internal rate of return (IRR) is a meaningful parameter for prospective owners of these PV systems. Nevertheless, this parameter has to be estimated by means of non-analytical methods. This paper presents some easy-to-use tables addressed to estimate the IRR avoiding cumbersome calculations, which is an attractive feature for owners, marketers and designers. Firstly, current and near-term costs of PVGCS are reviewed, together with some financial incentives available at present. This introduces the economic scenario, where the tables are to be used. A short introduction to the economic analysis of these systems provides a solid ground to eventually present the tables intended to the estimation of the IRR. Lastly, three examples demonstrate the use of the tables.