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

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 (Pl) 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 Pl 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. (C) 2019 Elsevier Ltd. All rights reserved.