Economic analysis of grid-connected residential rooftop PV systems in Turkey

A. Can Duman, Önder Güler*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

92 Citations (Scopus)

Abstract

This study presents an economic analysis of grid-connected residential rooftop PVs in Turkey under the current feed-in tariff (FiT) scheme. Three solar parts are formed on the solar map of Turkey to discuss the effect of solar radiation differences between regions on the feasibility of the systems. Nine provinces are selected for a nationwide analysis. 5 kW rooftop PVs are simulated using HOMER Grid. Discounted Payback Period (DPBP), Internal Rate of Return (IRR) and Profitability Index (PI) are used to ensure the viability of the systems from all aspects. DPBP below 8 years, IRR above 13.12%, and PI above 2 are considered feasible. The results showed that current DPBP, IRR, and PI of the systems are in the range of 7.75–14.43 years, 13.68%–6.87%, and 2.02–1.28, respectively. The systems are attractive only in one province in the southern part, and far from being investable in the northern part. A sensitivity analysis is performed to analyze the effect of varying FiT and PV initial cost on the feasibility of the systems and make policy implications. It is recommended to increase the amount of residential PV incentives in Turkey and develop a regional support mechanism, considering solar differences between regions.

Original languageEnglish
Pages (from-to)697-711
Number of pages15
JournalRenewable Energy
Volume148
DOIs
Publication statusPublished - Apr 2020

Bibliographical note

Publisher Copyright:
© 2019 Elsevier Ltd

Keywords

  • Discounted payback period
  • Feasibility analysis
  • Feed-in tariff
  • HOMER grid
  • Internal rate of return
  • Profitability index
  • Rooftop PV

Fingerprint

Dive into the research topics of 'Economic analysis of grid-connected residential rooftop PV systems in Turkey'. Together they form a unique fingerprint.

Cite this