Economic Feasibility of Residential and Commercial PV Technology: the Chilean Case

Abstract

This study presents an economic analysis of residential and commercial Photovoltaic (PV) systems in Chile. Continental Chile presents good solar resource and is also an interesting country for developing PV projects of all sizes (large-scale, commercial and residential). The analysis was performed on the two largest electric power systems, specifically on the 314 districts of 13 regions of Chile, taking into account the actual Chilean regulatory framework. Economic performance results of the residential and commercial PV systems were obtained and presented in geo referenced information systems (GIS) maps. The results show that almost all the country exhibits a great potential, obtaining in several locations an IRR higher than the reference value (5%/yr.) for both schemes (residential and commercial), highlighting that the central-north region reaches the highest IRR values. It was found that districts can be characterized by the electricity tariffs in clusters that increase the IRR linearly with the specific yield [kWh/kWp]. This study is of primordial importance for the development of renewable energies in the region, giving further understanding on the economic feasibility of the photovoltaic technology throughout the country.