Technical and Economic Aspects of Gridconnected Solar Photovoltaics in Brazil - Implementing Environmental and Resource Management - page 54

potential investor; this circumstance has been marked additionally with bold case
numbers. The results obtained are shown in the Tables 6.4 , 6.5 , and 6.6 below.

Table 6.4. Summary of economic indicator values for the PV system of configuration 1
(26.4 kWp of CIS modules with 18ºN tilt) in two sites, considering various scenarios

Reference case
[4.763 kWh/(m 2 *day),
18ºN]

Higher irradiation site
[5.863 kWh/(m 2 *day),
3ºN]

Indicator values ( NPV; Payback;
IRR )

No additional condition -147604; 53.7; -3.41% -99805; 42.8; -2.15%

A = Feed-in tariff (3 times the retail
price)

+65843; 25.1; +1.20% +209249; 18.4; +3.48%

B = Electr. price incr. 1% above in-
flation

-116836; 42.9; -2.46% -61356; 35.7; -1.21%

C = 30% initial capital subsidy or tax
relief

-47391; 37.6; -1.40% +411; 29.9; +0.01%

A + B

+129338; 22.5; +2.14% +294427; 17.0; +4.42%

A + C

+166059; 17.5; +3.88% +309465; 12.9; +6.61

B + C

-16170; 31.9; -0.44% +38860; 26.2; +0.97%

A + B + C

+229554; 16.2; +4.84% +394643; 12.2; +7.56%

From the results in Table 6.4 can be derived that, for the first configuration and in
the site initially planned, the investment would obtain a positive return only in the
case of introducing the feed-in tariff (or that combined with any of the other im-
proved conditions). An IRR above 5% could only be obtained in the original site
with the confluence of the three conditions, or in the site with higher irradiation
with at least the feed-in tariff and the initial capital subsidy.
From the results in Table 6.5 can be derived that, for the second configuration
and in the site initially planned, the investment could obtain a positive return ei-
ther introducing the feed-in tariff or the initial capital subsidy, in the higher irra-
diation site that would be attained under any of the three conditions or their com-
binations. An IRR above 5% could be obtained in the higher irradiation site with
the introduction of the feed-in tariff, or in both sites with any combination of more
than one condition including the feed-in tariff. Especially worth mentioning are
the results in the scenario A+B (a feed-in tariff and an increase of the electricity
retail prices an annual 1% above the inflation rate), as this can be considered a
quite possible situation and the values obtained for NPV (equal or higher than the
initial investment) and Payback time (close to or below half the expected lifetime)
would be quite satisfactory.