Net metering rolling credits vs. net billing buyback: An economic analysis of a policy option proposal for photovoltaic prosumers

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F24%3A10484402" target="_blank" >RIV/00216208:11230/24:10484402 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=I9ivlZpndD" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=I9ivlZpndD</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.renene.2024.121154" target="_blank" >10.1016/j.renene.2024.121154</a>

Result language
angličtina
Original language name
Net metering rolling credits vs. net billing buyback: An economic analysis of a policy option proposal for photovoltaic prosumers
Original language description
There is a need for a methodology that allows the prosumer to implement a policy of choosing different compensation mechanisms. Thus, we propose the economic equivalence between net metering rolling credit (NM-RC) and net billing buyback (NB-BB) by defining a breakeven price (BP) for NB-BB that equals the Net Present Value (NPV) of these two options and using Discounted Payback Time (DPBT) as a tiebreaker metric. The Brazilian scenario was used for validation. When using the retail price, the NPV values for the NM-RC mechanism were lower in all scenarios (mean NPV of US$ 3958.66 in NM-RC against US$ 4372.17 in NB-BB). It is possible to observe that the BP that equalizes the two mechanisms is generally lower than the tariff charged by the utility (mean BP is US$ 0.1111 while mean tariff is US$ 0.1838), which reveals that offering this choice option does not burden the system. The NM-RC was selected in four cities, and the NB-BB was chosen in three cities. This policy could encourage potential prosumers, who often feel reluctant to invest in PV-DG owing to the long payback period. Thus, the political schemes complementing the compensation mechanism are relevant, especially for continental-sized countries with many utilities.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory

Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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