Title: Economic and financial analysis of a grid-connected PV system in Rio de Janeiro for residential and commercial supply

Authors: Marcos Filardy Curi; Priscila de Jesus Freitas Pinto; João Pedro Duveen da Cunha; Rodrigo Rodrigues de Freitas

Addresses: Mechanical Engineering Program, Federal Centre for Technological Education – CEFET-RJ, Rio de Janeiro, Brazil ' Production Engineering Program, Federal Centre for Technological Education – CEFET-RJ, Rio de Janeiro, Brazil ' Mechanical Engineering Program. Federal Centre for Technological Education – CEFET-RJ, Rio de Janeiro, Brazil ' Production Engineering Program, Federal Centre for Technological Education – CEFET-RJ, Rio de Janeiro, Brazil

Abstract: Sustainable development and renewable energy sources are topics that have attracted global attention together with greater awareness of the need to preserve the planet's natural resources while still supplying energy demand. This paper presents an economic and financial analysis of a PV grid-connected system for residential and commercial supply located in the state of Rio de Janeiro. The model is evaluated considering technical aspects like energy security, compatibility, energy production optimisation and economic payback forecasting where the real options theory (ROT) is applied for economic analysis. The economic viability and the technical potential of a grid-connected system rated at 2.7 kWp and 11.7 kWp PV for residential and commercial scale, respectively, were examined. Demonstrating that for a system expected to last 25 years, the payback time results occur in six years, minimum, at residential scale and five years at commercial scale, proving the investment viability.

Keywords: renewable energy; solar energy; sustainability; engineering; financial and economic analysis.

DOI: 10.1504/IJSE.2022.125975

International Journal of Sustainable Economy, 2022 Vol.14 No.4, pp.411 - 428

Received: 16 Aug 2021
Accepted: 08 Oct 2021
Published online: 05 Oct 2022 *

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