Can photovoltaic systems be profitable in urban areas? Analysis of regulation scenarios for four cases in Valencia city (Spain)

Abstract

[EN] Costs of photovoltaic power systems have fallenover the last decade, while the energy prices have risen. As a result, this kind of system is being proposed as a cost-effective option for power generation in the built environment. However, some authors consider that better regulatory support is still needed to deploy the PV potential in cities. In this research, four illustrative cases show that the latter could be the case in a Mediterranean city with high annual solar radiation, such as Valencia. Unlike most previous research based on statistics, this research uses real data and real market equipment information to develop the analysis. The Software HOMER is used to simulate the performance of the study cases; the findings show how the change of the regulation improves the viability of these urban renewable energy systems. However, although all four cases are technically sound, further changes in the regulation are found necessary for all of them to be economically viable. With a net metering system not yet allowed in Spain, the payback of the investments would be reduced by one-third. This study shows that the orientation, angle of roofs, shadowing, and others greatly affect the surface availability and maximum installable power. Hence, this study discusses real data and accurate simulations of the cost-effectiveness of photovoltaic systems in the built environment. Then, the influence of regulation on the economic viability of urban photovoltaic systems is considered. Finally, recommendations for regulatory development are proposed to meet the expectations for the deployment of PV generation potential.