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

Abstract

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.Economic analysis Grid-connected Financing