The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case
The Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-05-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/9/2728 |
| _version_ | 1797534705582604288 |
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| author | Chun-Nan Chen Chun-Ting Yang |
| author_facet | Chun-Nan Chen Chun-Ting Yang |
| author_sort | Chun-Nan Chen |
| collection | DOAJ |
| description | The Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period. Predicting the future ten-year equity internal rate of return (IRR) in this study, we examine the investability of PV systems in Taiwan when subsidies and investment costs descend. We have found that the projected subsidies scheme favours investment in small-sized PV systems. Unless the investment costs of medium-sized PV systems fall or subsidies rise over the next decade, investing in medium-sized PV systems will be less attractive. Nonlinear and linear degradation causes slight IRR differences when using higher-reliability modules. |
| first_indexed | 2024-03-10T11:34:13Z |
| format | Article |
| id | doaj.art-fc267ba3631349e8ace09d903f52edfd |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T11:34:13Z |
| publishDate | 2021-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-fc267ba3631349e8ace09d903f52edfd2023-11-21T19:03:37ZengMDPI AGEnergies1996-10732021-05-01149272810.3390/en14092728The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan CaseChun-Nan Chen0Chun-Ting Yang1Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, TaiwanGraduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, TaiwanThe Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period. Predicting the future ten-year equity internal rate of return (IRR) in this study, we examine the investability of PV systems in Taiwan when subsidies and investment costs descend. We have found that the projected subsidies scheme favours investment in small-sized PV systems. Unless the investment costs of medium-sized PV systems fall or subsidies rise over the next decade, investing in medium-sized PV systems will be less attractive. Nonlinear and linear degradation causes slight IRR differences when using higher-reliability modules.https://www.mdpi.com/1996-1073/14/9/2728feed-in tariffphotovoltaicinvestabilityIRR |
| spellingShingle | Chun-Nan Chen Chun-Ting Yang The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case Energies feed-in tariff photovoltaic investability IRR |
| title | The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case |
| title_full | The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case |
| title_fullStr | The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case |
| title_full_unstemmed | The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case |
| title_short | The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case |
| title_sort | investability of pv systems under descending feed in tariffs taiwan case |
| topic | feed-in tariff photovoltaic investability IRR |
| url | https://www.mdpi.com/1996-1073/14/9/2728 |
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