Evaluation of economic feasibility of rooftop solar energy systems under multiple variables

Adekunle Olubowale Mofolasayo; Adekunle Olubowale Mofolasayo

doi:10.3934/ctr.2024004

Clean Technologies and Recycling

2024, Volume 4, Issue 1: 61-88. doi: 10.3934/ctr.2024004

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Research article

Evaluation of economic feasibility of rooftop solar energy systems under multiple variables

Adekunle Olubowale Mofolasayo ^,

Carnelian-Ruby Inc (www.carnelianruby.ca). 117-1757 Cunningham Way, SW, Edmonton, T6W 3B5, Alberta, Canada

Received: 26 May 2024 Revised: 21 July 2024 Accepted: 26 August 2024 Published: 10 September 2024

Rooftop harvesting of solar energy is a promising method to provide a great portion of household energy requirements in many parts of the world. However, the cost of solar energy systems sometimes makes the exploration of rooftop solar energy systems not attractive to property owners. This study evaluates the economic factors that could affect the decision on whether to consider the installation of solar energy systems using the estimated time that the cumulative solar savings would become positive. The economic implication of increasing the micro-generation capacity of individual households, and the impact of varied interest rates, and subsidies were also evaluated. Among the three factors that were presented, the result showed that increasing the amount of electricity that is allowed to be generated from individual rooftops will result in the highest economic attractiveness for end-users. This is also expected to move the world closer to the goal of sustainable management of non-renewable resources for present and future generations. Increasing the micro-generation capacity of electricity from photovoltaic (PV) rooftops by individual households without increasing the electricity distribution fees results in a reduction of the time to reach positive solar savings. In addition, increasing the micro-generation capacity of electricity from PV rooftops is expected to contribute to a reduction in the greenhouse gas (GHG) emissions from the electricity grid for the entire community. This study recommends the encouragement of policies that allow for the maximization of electricity generation potential from rooftops of residential and industrial buildings.
- solar energy,
- resource depletion,
- energy policy,
- economic sustainability,
- market penetration,
- solar economics
Citation: Adekunle Olubowale Mofolasayo. Evaluation of economic feasibility of rooftop solar energy systems under multiple variables[J]. Clean Technologies and Recycling, 2024, 4(1): 61-88. doi: 10.3934/ctr.2024004

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Abstract

Rooftop harvesting of solar energy is a promising method to provide a great portion of household energy requirements in many parts of the world. However, the cost of solar energy systems sometimes makes the exploration of rooftop solar energy systems not attractive to property owners. This study evaluates the economic factors that could affect the decision on whether to consider the installation of solar energy systems using the estimated time that the cumulative solar savings would become positive. The economic implication of increasing the micro-generation capacity of individual households, and the impact of varied interest rates, and subsidies were also evaluated. Among the three factors that were presented, the result showed that increasing the amount of electricity that is allowed to be generated from individual rooftops will result in the highest economic attractiveness for end-users. This is also expected to move the world closer to the goal of sustainable management of non-renewable resources for present and future generations. Increasing the micro-generation capacity of electricity from photovoltaic (PV) rooftops by individual households without increasing the electricity distribution fees results in a reduction of the time to reach positive solar savings. In addition, increasing the micro-generation capacity of electricity from PV rooftops is expected to contribute to a reduction in the greenhouse gas (GHG) emissions from the electricity grid for the entire community. This study recommends the encouragement of policies that allow for the maximization of electricity generation potential from rooftops of residential and industrial buildings.

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