Version 1
: Received: 17 September 2024 / Approved: 18 September 2024 / Online: 18 September 2024 (16:43:47 CEST)
How to cite:
He, B.; Zheng, H.; Zhang, Q.; Zhao, Y.; Tang, H.; Xi, P.; Wei, L.; Li, M.; Guan, Q. Toward a Comprehensive Economic Comparison Framework for Solar Projects: A Case Study of Utility and Residential Scales. Preprints2024, 2024091451. https://doi.org/10.20944/preprints202409.1451.v1
He, B.; Zheng, H.; Zhang, Q.; Zhao, Y.; Tang, H.; Xi, P.; Wei, L.; Li, M.; Guan, Q. Toward a Comprehensive Economic Comparison Framework for Solar Projects: A Case Study of Utility and Residential Scales. Preprints 2024, 2024091451. https://doi.org/10.20944/preprints202409.1451.v1
He, B.; Zheng, H.; Zhang, Q.; Zhao, Y.; Tang, H.; Xi, P.; Wei, L.; Li, M.; Guan, Q. Toward a Comprehensive Economic Comparison Framework for Solar Projects: A Case Study of Utility and Residential Scales. Preprints2024, 2024091451. https://doi.org/10.20944/preprints202409.1451.v1
APA Style
He, B., Zheng, H., Zhang, Q., Zhao, Y., Tang, H., Xi, P., Wei, L., Li, M., & Guan, Q. (2024). Toward a Comprehensive Economic Comparison Framework for Solar Projects: A Case Study of Utility and Residential Scales. Preprints. https://doi.org/10.20944/preprints202409.1451.v1
Chicago/Turabian Style
He, B., Muqing Li and Qun Guan. 2024 "Toward a Comprehensive Economic Comparison Framework for Solar Projects: A Case Study of Utility and Residential Scales" Preprints. https://doi.org/10.20944/preprints202409.1451.v1
Abstract
The growing demand for clean energy transitions has become increasingly significant, with solar energy emerging as one of the most prominent clean energy resources contributing to this effort. However, there remains limited knowledge regarding the economic feasibility of solar project development across different geographic locations and scales. This study introduces a comprehensive economic analysis framework to assess the economic viability of residential and utility-scale solar projects, using California, Tennessee, and Texas as case studies. The economic assessment is conducted through a cost-benefit analysis that adopts a full life-cycle approach, encompassing phases from permitting to demolition for both scales of solar projects. We found that utility-scale solar projects generally offer more favorable investment return ratios compared to residential projects, despite the absence of land acquisition costs and lower initial capital expenditures for the latter. Furthermore, the incorporation of energy storage solutions, such as Battery Energy Storage Systems (BESS), is shown to be essential for improving the efficiency of residential solar energy usage, with efficiency gains of up to 50%. Finally, region-specific strategies, including net metering policies, electricity retail market structures, and the promotion of solar adoption, play a crucial role in enhancing the financial viability of solar projects for both residential and utility scales.
Keywords
Utility Solar Farms; Cost-Benefit Analysis; Economic Analysis; Life Cycle Approach; Battery Energy Storage System (BESS); Grid-tie Residential Solar Systems
Subject
Engineering, Energy and Fuel Technology
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
