Estimating the diffusion of rooftop PVs : A real estate economics perspective

Research output: Contribution to journalArticleScientificpeer-review

Standard

Estimating the diffusion of rooftop PVs : A real estate economics perspective. / Vimpari, Jussi; Junnila, Seppo.

In: Energy, Vol. 172, 01.04.2019, p. 1087-1097.

Research output: Contribution to journalArticleScientificpeer-review

Harvard

APA

Vancouver

Author

Bibtex - Download

@article{db3534d8af9343d29dc7eb9d59281800,
title = "Estimating the diffusion of rooftop PVs : A real estate economics perspective",
abstract = "Currently, the economic performance of rooftop photovoltaics (PVs) is predominantly evaluated using the levelized cost of electricity approach. Some researchers have argued that rooftop PVs should be viewed as an investment, where performance is evaluated using relevant investment analysis methods. This article argues that the proper economic value and climate mitigation potential of rooftop PVs can be assessed only if the market mechanisms and characteristics of the underlying building stock are understood better. This paper utilises a customer-driven investment model to examine the feasible market potential of rooftop PVs in an urban environment. The economic returns of PV installations are calculated for 89,000 buildings separately and by comparing them to the underlying spatial property returns, the profitability and adoption years of rooftop PVs for in different locations are estimated. Implications for CO2 emissions and the impact of the net metering (NM) policy on the rate of adoption are calculated. The results imply that even in Finland rooftop solar PVs are already profitable for a third of the residential building stock and will be profitable for a fourth of the commercial building stock by 2025. Finally, the NM could increase substantially the diffusion rate of solar PVs in the coming years. (C) 2019 The Authors. Published by Elsevier Ltd.",
keywords = "Investment analysis, Net metering, Net present value, Photovoltaics, Property yield, Real estate economics, SOLAR PV, PROFITABILITY, NETWORK, PHOTOVOLTAIC SYSTEMS, LEVELIZED COST, ELECTRICITY",
author = "Jussi Vimpari and Seppo Junnila",
year = "2019",
month = "4",
day = "1",
doi = "10.1016/j.energy.2019.02.049",
language = "English",
volume = "172",
pages = "1087--1097",
journal = "Energy (the International Journal)",
issn = "0360-5442",

}

RIS - Download

TY - JOUR

T1 - Estimating the diffusion of rooftop PVs : A real estate economics perspective

AU - Vimpari, Jussi

AU - Junnila, Seppo

PY - 2019/4/1

Y1 - 2019/4/1

N2 - Currently, the economic performance of rooftop photovoltaics (PVs) is predominantly evaluated using the levelized cost of electricity approach. Some researchers have argued that rooftop PVs should be viewed as an investment, where performance is evaluated using relevant investment analysis methods. This article argues that the proper economic value and climate mitigation potential of rooftop PVs can be assessed only if the market mechanisms and characteristics of the underlying building stock are understood better. This paper utilises a customer-driven investment model to examine the feasible market potential of rooftop PVs in an urban environment. The economic returns of PV installations are calculated for 89,000 buildings separately and by comparing them to the underlying spatial property returns, the profitability and adoption years of rooftop PVs for in different locations are estimated. Implications for CO2 emissions and the impact of the net metering (NM) policy on the rate of adoption are calculated. The results imply that even in Finland rooftop solar PVs are already profitable for a third of the residential building stock and will be profitable for a fourth of the commercial building stock by 2025. Finally, the NM could increase substantially the diffusion rate of solar PVs in the coming years. (C) 2019 The Authors. Published by Elsevier Ltd.

AB - Currently, the economic performance of rooftop photovoltaics (PVs) is predominantly evaluated using the levelized cost of electricity approach. Some researchers have argued that rooftop PVs should be viewed as an investment, where performance is evaluated using relevant investment analysis methods. This article argues that the proper economic value and climate mitigation potential of rooftop PVs can be assessed only if the market mechanisms and characteristics of the underlying building stock are understood better. This paper utilises a customer-driven investment model to examine the feasible market potential of rooftop PVs in an urban environment. The economic returns of PV installations are calculated for 89,000 buildings separately and by comparing them to the underlying spatial property returns, the profitability and adoption years of rooftop PVs for in different locations are estimated. Implications for CO2 emissions and the impact of the net metering (NM) policy on the rate of adoption are calculated. The results imply that even in Finland rooftop solar PVs are already profitable for a third of the residential building stock and will be profitable for a fourth of the commercial building stock by 2025. Finally, the NM could increase substantially the diffusion rate of solar PVs in the coming years. (C) 2019 The Authors. Published by Elsevier Ltd.

KW - Investment analysis

KW - Net metering

KW - Net present value

KW - Photovoltaics

KW - Property yield

KW - Real estate economics

KW - SOLAR PV

KW - PROFITABILITY

KW - NETWORK

KW - PHOTOVOLTAIC SYSTEMS

KW - LEVELIZED COST

KW - ELECTRICITY

UR - http://www.scopus.com/inward/record.url?scp=85062147723&partnerID=8YFLogxK

U2 - 10.1016/j.energy.2019.02.049

DO - 10.1016/j.energy.2019.02.049

M3 - Article

VL - 172

SP - 1087

EP - 1097

JO - Energy (the International Journal)

JF - Energy (the International Journal)

SN - 0360-5442

ER -

ID: 32432339