Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems

This paper presents an analysis of shortening the payback period of greenhouse gas reduction benefits from photovoltaic rooftop systems. The objective was to evaluate the amount of carbon credits generated and their returns. The study includes an economic analysis and a comparison of the economic ou...

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Main Authors: Nattachote Rugthaicharoencheep, Natchapol Ruangsap, Supawud Nedphokaew
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/23/6159
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author Nattachote Rugthaicharoencheep
Natchapol Ruangsap
Supawud Nedphokaew
author_facet Nattachote Rugthaicharoencheep
Natchapol Ruangsap
Supawud Nedphokaew
author_sort Nattachote Rugthaicharoencheep
collection DOAJ
description This paper presents an analysis of shortening the payback period of greenhouse gas reduction benefits from photovoltaic rooftop systems. The objective was to evaluate the amount of carbon credits generated and their returns. The study includes an economic analysis and a comparison of the economic outcomes with and without the consideration of carbon credits from 149.80 kWp and 25.68 kWp photovoltaic rooftop systems. The study evaluated the amount of electrical energy produced by the photovoltaic rooftop systems, estimated using the PVsyst program version 7.3.1, at a factory in Pathum Thani Province, Thailand. The economic indices analyzed in this study include the payback period, net present value (NPV), benefit–cost ratio (B/C ratio), and internal rate of return (IRR). The analysis is divided into four case studies: Case 1 is the base case, and Cases 2, 3, and 4 consider carbon credits for 7, 14, and 25 years, respectively. The economic indices analyzed in Case 1 include the financial internal rate of return (FIRR), payback period, financial net present value (FNPV), and B/C ratio. In Cases 2, 3, and 4, the economic indices analyzed are the economic internal rate of return (EIRR), the economic net present value (ENPV), the B/C ratio, and the payback period. This paper outlines a new economic calculation approach that incorporates carbon credits produced by photovoltaic rooftop systems, which helps achieve break-even points more quickly. It also discusses the application of carbon credits in conjunction with renewable energy.
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spelling doaj-art-bb0c36f1e92d42968236d8cc21b4a9f32024-12-13T16:26:14ZengMDPI AGEnergies1996-10732024-12-011723615910.3390/en17236159Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop SystemsNattachote Rugthaicharoencheep0Natchapol Ruangsap1Supawud Nedphokaew2Department of Electrical Engineering, Faculty of Engineering, Rajamangala University of Technology Phra Nakhon, Bangkok 10800, ThailandDepartment of Electrical Engineering, Faculty of Engineering, Rajamangala University of Technology Phra Nakhon, Bangkok 10800, ThailandDepartment of Electrical Engineering, Faculty of Engineering, Rajamangala University of Technology Phra Nakhon, Bangkok 10800, ThailandThis paper presents an analysis of shortening the payback period of greenhouse gas reduction benefits from photovoltaic rooftop systems. The objective was to evaluate the amount of carbon credits generated and their returns. The study includes an economic analysis and a comparison of the economic outcomes with and without the consideration of carbon credits from 149.80 kWp and 25.68 kWp photovoltaic rooftop systems. The study evaluated the amount of electrical energy produced by the photovoltaic rooftop systems, estimated using the PVsyst program version 7.3.1, at a factory in Pathum Thani Province, Thailand. The economic indices analyzed in this study include the payback period, net present value (NPV), benefit–cost ratio (B/C ratio), and internal rate of return (IRR). The analysis is divided into four case studies: Case 1 is the base case, and Cases 2, 3, and 4 consider carbon credits for 7, 14, and 25 years, respectively. The economic indices analyzed in Case 1 include the financial internal rate of return (FIRR), payback period, financial net present value (FNPV), and B/C ratio. In Cases 2, 3, and 4, the economic indices analyzed are the economic internal rate of return (EIRR), the economic net present value (ENPV), the B/C ratio, and the payback period. This paper outlines a new economic calculation approach that incorporates carbon credits produced by photovoltaic rooftop systems, which helps achieve break-even points more quickly. It also discusses the application of carbon credits in conjunction with renewable energy.https://www.mdpi.com/1996-1073/17/23/6159payback periodgreenhouse gasbenefitcarbon creditphotovoltaic rooftop system
spellingShingle Nattachote Rugthaicharoencheep
Natchapol Ruangsap
Supawud Nedphokaew
Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems
Energies
payback period
greenhouse gas
benefit
carbon credit
photovoltaic rooftop system
title Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems
title_full Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems
title_fullStr Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems
title_full_unstemmed Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems
title_short Shortening the Payback Period of Greenhouse Gas Reduction Benefits from Photovoltaic Rooftop Systems
title_sort shortening the payback period of greenhouse gas reduction benefits from photovoltaic rooftop systems
topic payback period
greenhouse gas
benefit
carbon credit
photovoltaic rooftop system
url https://www.mdpi.com/1996-1073/17/23/6159
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