LAPSE:2023.32183v1
Published Article

LAPSE:2023.32183v1
The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case
April 19, 2023
Abstract
The Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period. Predicting the future ten-year equity internal rate of return (IRR) in this study, we examine the investability of PV systems in Taiwan when subsidies and investment costs descend. We have found that the projected subsidies scheme favours investment in small-sized PV systems. Unless the investment costs of medium-sized PV systems fall or subsidies rise over the next decade, investing in medium-sized PV systems will be less attractive. Nonlinear and linear degradation causes slight IRR differences when using higher-reliability modules.
The Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period. Predicting the future ten-year equity internal rate of return (IRR) in this study, we examine the investability of PV systems in Taiwan when subsidies and investment costs descend. We have found that the projected subsidies scheme favours investment in small-sized PV systems. Unless the investment costs of medium-sized PV systems fall or subsidies rise over the next decade, investing in medium-sized PV systems will be less attractive. Nonlinear and linear degradation causes slight IRR differences when using higher-reliability modules.
Record ID
Keywords
feed-in tariff, investability, IRR, photovoltaic
Subject
Suggested Citation
Chen CN, Yang CT. The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case. (2023). LAPSE:2023.32183v1
Author Affiliations
Chen CN: Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, Taiwan
Yang CT: Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, Taiwan
Yang CT: Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, Taiwan
Journal Name
Energies
Volume
14
Issue
9
First Page
2728
Year
2021
Publication Date
2021-05-10
ISSN
1996-1073
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Original Submission
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PII: en14092728, Publication Type: Journal Article
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LAPSE:2023.32183v1
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https://doi.org/10.3390/en14092728
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Apr 19, 2023
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