Financial Analysis of Solar Rooftop PV System: Case Study in Indonesia

Authors

  • Elieser Tarigan Department of Electrical Engineering, Center for Environment and Renewable Energy Studies (PuSLET), University of Surabaya, Indonesia.

DOI:

https://doi.org/10.32479/ijeep.14214

Keywords:

PV system, financial, rooftop, electricity, unit cost

Abstract

The primary barrier to the dissemination of photovoltaic (PV) technology is its high cost as compared to other alternative options. This paper discusses some financial aspects of rooftop PV systems: module cost, BOS cost, useful lifetime, minimum attractive rate of return, and O&M cost. An equation and numerical calculation were made for estimating the unit cost of electricity of a rooftop system. The numerical calculation  and simulation were made by taking the condition of  Indonesia as the case study. It was assumed that (i) the useful lifetime of the PV system is 20 years, (ii) the annual maintenance cost is two percent of the total capital cost of the system, (iii) taxes and insurance costs are not to be paid, and (iv) capacity utilization is 20 percent. It is found that rooftop PV systems have the potential to provide power at competitive prices for residential with other alternative options for power generation.

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Published

2023-05-17

How to Cite

Tarigan, E. (2023). Financial Analysis of Solar Rooftop PV System: Case Study in Indonesia. International Journal of Energy Economics and Policy, 13(3), 15–19. https://doi.org/10.32479/ijeep.14214

Issue

Vol. 13 No. 3 (2023)

Section

Articles

License

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