Renewable energy production support schemes for residential-scale solar photovoltaic systems in Nordic conditions

Janne Hirvonen (Corresponding Author), Genku Kayo, Sunliang Cao, Ala Hasan, Kai Sirén

    Research output: Contribution to journalArticleScientificpeer-review

    12 Citations (Scopus)

    Abstract

    The objective of this study was to examine the effect of production-based support schemes on the economic feasibility of residential-scale PV systems (1-10. kW) in Finland. This was done by calculating the payback time for various sizes of newly installed PV systems for a Finnish detached house with district heating. Three types of economic support schemes (guaranteed selling price, fixed premiums and self-consumption incentives) were tested in an hourly simulation. The load of the building was based on real-life measurements, while PV output was simulated with TRNSYS software. The energy results were post-processed with economic data in MATLAB to find the payback time. Hourly electricity prices from the Nordic energy market were used with PV system prices from Finnish companies.Unsubsidised residential PV systems in Finland had payback times of more than 40 years. The production-based support for PV generation needs to be two to three times the buying price of electricity, to make it possible to pay back the initial investment in 20 years. Low capacity systems with more than 50% self-consumption (under 3. kW) were favoured by self-consumption incentives, while high capacity systems with less than 40% self-consumption (over 5. kW) were favoured by the FIT-type support schemes.
    Original languageEnglish
    Pages (from-to)72-86
    JournalEnergy Policy
    Volume79
    DOIs
    Publication statusPublished - 2015
    MoE publication typeA1 Journal article-refereed

    Fingerprint

    photovoltaic system
    Economics
    Electricity
    incentive
    electricity
    District heating
    MATLAB
    energy market
    Sales
    software
    energy production
    consumption
    price
    Industry
    economics
    simulation
    energy

    Keywords

    • feed-in tariff
    • Finland
    • on-site energy matching
    • payback time
    • photovoltaic system
    • renewable energy support

    Cite this

    Hirvonen, Janne ; Kayo, Genku ; Cao, Sunliang ; Hasan, Ala ; Sirén, Kai. / Renewable energy production support schemes for residential-scale solar photovoltaic systems in Nordic conditions. In: Energy Policy. 2015 ; Vol. 79. pp. 72-86.
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    title = "Renewable energy production support schemes for residential-scale solar photovoltaic systems in Nordic conditions",
    abstract = "The objective of this study was to examine the effect of production-based support schemes on the economic feasibility of residential-scale PV systems (1-10. kW) in Finland. This was done by calculating the payback time for various sizes of newly installed PV systems for a Finnish detached house with district heating. Three types of economic support schemes (guaranteed selling price, fixed premiums and self-consumption incentives) were tested in an hourly simulation. The load of the building was based on real-life measurements, while PV output was simulated with TRNSYS software. The energy results were post-processed with economic data in MATLAB to find the payback time. Hourly electricity prices from the Nordic energy market were used with PV system prices from Finnish companies.Unsubsidised residential PV systems in Finland had payback times of more than 40 years. The production-based support for PV generation needs to be two to three times the buying price of electricity, to make it possible to pay back the initial investment in 20 years. Low capacity systems with more than 50{\%} self-consumption (under 3. kW) were favoured by self-consumption incentives, while high capacity systems with less than 40{\%} self-consumption (over 5. kW) were favoured by the FIT-type support schemes.",
    keywords = "feed-in tariff, Finland, on-site energy matching, payback time, photovoltaic system, renewable energy support",
    author = "Janne Hirvonen and Genku Kayo and Sunliang Cao and Ala Hasan and Kai Sir{\'e}n",
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    Renewable energy production support schemes for residential-scale solar photovoltaic systems in Nordic conditions. / Hirvonen, Janne (Corresponding Author); Kayo, Genku; Cao, Sunliang; Hasan, Ala; Sirén, Kai.

    In: Energy Policy, Vol. 79, 2015, p. 72-86.

    Research output: Contribution to journalArticleScientificpeer-review

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    T1 - Renewable energy production support schemes for residential-scale solar photovoltaic systems in Nordic conditions

    AU - Hirvonen, Janne

    AU - Kayo, Genku

    AU - Cao, Sunliang

    AU - Hasan, Ala

    AU - Sirén, Kai

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    PY - 2015

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    N2 - The objective of this study was to examine the effect of production-based support schemes on the economic feasibility of residential-scale PV systems (1-10. kW) in Finland. This was done by calculating the payback time for various sizes of newly installed PV systems for a Finnish detached house with district heating. Three types of economic support schemes (guaranteed selling price, fixed premiums and self-consumption incentives) were tested in an hourly simulation. The load of the building was based on real-life measurements, while PV output was simulated with TRNSYS software. The energy results were post-processed with economic data in MATLAB to find the payback time. Hourly electricity prices from the Nordic energy market were used with PV system prices from Finnish companies.Unsubsidised residential PV systems in Finland had payback times of more than 40 years. The production-based support for PV generation needs to be two to three times the buying price of electricity, to make it possible to pay back the initial investment in 20 years. Low capacity systems with more than 50% self-consumption (under 3. kW) were favoured by self-consumption incentives, while high capacity systems with less than 40% self-consumption (over 5. kW) were favoured by the FIT-type support schemes.

    AB - The objective of this study was to examine the effect of production-based support schemes on the economic feasibility of residential-scale PV systems (1-10. kW) in Finland. This was done by calculating the payback time for various sizes of newly installed PV systems for a Finnish detached house with district heating. Three types of economic support schemes (guaranteed selling price, fixed premiums and self-consumption incentives) were tested in an hourly simulation. The load of the building was based on real-life measurements, while PV output was simulated with TRNSYS software. The energy results were post-processed with economic data in MATLAB to find the payback time. Hourly electricity prices from the Nordic energy market were used with PV system prices from Finnish companies.Unsubsidised residential PV systems in Finland had payback times of more than 40 years. The production-based support for PV generation needs to be two to three times the buying price of electricity, to make it possible to pay back the initial investment in 20 years. Low capacity systems with more than 50% self-consumption (under 3. kW) were favoured by self-consumption incentives, while high capacity systems with less than 40% self-consumption (over 5. kW) were favoured by the FIT-type support schemes.

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