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INVOLAR Microinverters

INVOLAR Microinverters. Evaluation of ROI of a 3 kW PV system . LEGISLATION. The purpose of government support of PV is to encourage the development of renewable energy by creating an environment conducive to investment. This could be achieved through: Feed-in tariffs Green bonuses

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INVOLAR Microinverters

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  1. INVOLAR Microinverters Evaluation of ROI of a 3 kW PV system

  2. LEGISLATION The purpose of government support of PV is to encourage the development of renewable energy by creating an environment conducive to investment. This could be achieved through: • Feed-in tariffs • Green bonuses • Green certificates • Net metering schemes

  3. ELECTRICITY PRICES BY COUNTRY

  4. SYSTEM INFORMATION

  5. FRANCE

  6. LEGISLATION : Feed-In Tariff • All electricity generated by PV is sold to energy utilities company Energy De France (EDF) • EDF buys electricity from producer at a higher price than it sells electricity back • Producers make a profit selling and buying back • Feed-in tariffs are guaranteed for 20 years • Different selling tariffs depending on PV installation and output capacity • FIT values are adjusted every trimester, based on the amount of systems installed in the previous 4 months • A January 2013 decree states that a 5-10% increase in FIT will be given to those whose PV system’s components are of EU origin

  7. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 8years, while the payback time of the same system with microinverters is ≈ 5.5 years.

  8. CZECH REPUBLIC

  9. LEGISLATION: Feed-In Tariff or Green Bonus • Opt every year for feed-in tariff or green bonus • Feed-In-Tariffs • The producers have to sell all the electricity generated to the grid • Value of FIT is assured for 20 years • FIT values are fixed for systems installed that year. Ex: systems installed in 2010 will always pay the 2010 FIT. • Already announced FITs increase annually according to inflation, 2-4%. • Feed-in tariff prices: • $ 0.19 for 1-5 kW system • $ 0.15 for 5-30 kW system

  10. FINANCIAL ASPECT: Amortization and ROI • Conclusion: The payback time of a 3kW system with a central inverteris ≈ 12 years, while the payback time of the same system with microinverters is ≈ 8.5 years. • Comments: • the price of electricity to grid was calculated according to a 3% increase in price every year; • Thus, an average price of 0.27 $ was considered;

  11. b) Green Bonus System • Producers receive a certain amount of money, called a “green bonus.” This revenue is guaranteed. • Can sell excess electricity directly to consumers on free market at market price. Revenue not guaranteed • Sum of expected revenues (bonus + sale of electricity) should be higher than from FIT. Higher potential revenue reflects the risk involved in price volatility and fluctuation and in selling electricity personally. • Green bonus system prices: • $ 0.16 for 1-5 kW system • $ 0.12 for 5-30 kW system

  12. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 13 years, while the payback time of the same system with microinverters is ≈ 9years. Comments: - Based on the producer consuming all the electricity generated by the system. FIT considered as the Electricity price.

  13. SPAIN

  14. LEGISLATION: Feed-In Tariff • Used to have an ambitious program with feed-in tariffs 12x the market price for electricity • Led to 26 billion euro of national debt to producers • Government tried to climb out of debt by reducing the feed-in tariff payback period, and restricting it to already installed systems • Now trying to pass a reform to halt electricity export to the grid

  15. Proposed Spanish Reform • Completely cut feed-in tariffs that were supposed to be guaranteed for 20 years • Implement a tax on producing electricity from PV, so PV owners would pay to export their electricity on top of paying to buy any electricity from the grid • Require all PV systems to be grid connected in order to monitor all production and consumption. 30 million Euro fine for non-compliance

  16. DENMARK

  17. LEGISLATION : Net-Metering Scheme • Producers are exempt from paying Public Service Obligations taxes, with an annual max of $2,700 per person • a) Commercial Installations • Commercial installations <50kW can sell excess electricity back to the grid, and no PSO has to be • paid to buy electricity from the grid • Commercial installations larger than 50kW must consume the energy they produce on site, and they receive reductions on PSO tariffs

  18. b) Private Installations • Private installations under 6kW can consume their own generated electricity, and can “store” excess electricity on the grid to be consumed later at no cost; • In case the annual amount of energy consumed exceeds the amount produced, the consumer buys this from the grid at the market price of electricity • The producers can sell the excess electricity to the grid at a price of 0.23 USD per kWh

  19. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 17 years, while the payback time of the same system with microinverters is ≈ 11 years. Comments: the amortization time of the system is high because of the high costs of the installations and the low output power due to the country’s location. Furthermore, the FIT has a low value in comparison with the amount of money invested

  20. NETHERLANDS

  21. LEGISLATION : Net-Metering Scheme • All electricity produced by PV must be sold to power companies • The price of electricity generated by PV sold to the grid is the same as that of electricity bought from the grid • When buying electricity back from the grid, the cost is canceled out • Taxed for electricity bought from the grid in excess of production

  22. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 11.5 years, while the payback time of the same system with microinverters is ≈ 8.5 years.

  23. GERMANY

  24. LEGISLATION : Feed-In Tariff • Feed-in tariff is dropping rapidly. Currently at $0.19, and price to buy electricity is $0.36. • The producer is not allowed to store electricity on the grid, but they can buy a separate, not grid-tied storage system. • It is more profitable to consume all electricity generated in order to avoid buying more expensive electricity from the grid.

  25. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverter when the producer decides to consume all the electricity generated is ≈ 21 years, while the payback time of the same system with microinverters is ≈ 15 years. Comments: the amortization time is high because of the low amount of money the system owners receive as FIT. Customers prefer to self-consume all electricity

  26. PORTUGAL

  27. LEGISLATION : Feed-In Tariff Mini and micro installations All electricity produced is sold to the electricity utilities company. For installations under 3.68 kW, the feed-in tariff is $0.26 per kWh for the first 8 years, and $0.22 for the next 7 years. • Feed-in tariff granted for 15 years. For the installations between 3.68 kW and 20 kW, the price of electricity is $0.20 for 15 years.

  28. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 11 years, while the payback time of the same system with microinverters is ≈ 7.5 years.

  29. CALIFORNIA

  30. LEGISLATION : Feed-In Tariff • Feed in tariff for installations up to 3MW. Contracts with a utilities company are for 10, 15 or 20 years. Can choose to sell all electricity generated or only excess. • • Large production plants, for example, will sell all the electricity they generate, and homeowners can sell their excess for a profit. • • Sell rate: 0.09 USD kWh • • Buy rate: 0.16 USD kWh • • LA has a separate scheme whereby $0.16 is paid per kWh, multiplied by 0.50-2.25 depending on time of delivery.

  31. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 12 years, while the payback time of the same system with microinverters is ≈ 8years.

  32. MALTA

  33. LEGISLATION : Feed-In Tariff The owner of a PV system cam choose to : Use the output for self-consumptionand store the excess on the grid to be used at a later point Sell all the output power to Enemalta Sell the excess output power to Enemalta *There is a limit on how much producers can sell to the grid. The maximum a producer can receive in 6 years is 50% of the price they paid for their PV installation.

  34. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 11 years, while the payback time of the same system with microinverters is ≈ 8 years.

  35. ITALY

  36. LEGISLATION : Net Metering Scheme • The producer consumes what he generates. • The producer is allowed to store on the grid any electricity generated but not consumed, to be used for free at a later time. • Producers with over 20 kW installed capacity receive a rebate on purchasing electricity from the grid.

  37. FINANCIAL ASPECT: Amortization and ROI Conclusion: The payback time of a 3kW system with a central inverteris ≈ 12 years, while the payback time of the same system with microinverters is ≈ 8years.

  38. CONCLUSIONS

  39. All in all, the average amortization time for a 3 kW system with central inverters is 13 years, while the amortization for the same system but with microinverters installation is 9 years.

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