Installing a photovoltaic system- electricity production and economics : A case study of a PV-system installationon a farm in Falun, Sweden

Sammanfattning: The installed power of solar produced electricity has increasedexponentially during the last years and an increased interest has risenamong electricity consumers in Sweden regarding installing solar panelsystems. This is a result of a decrease of the initial cost,introduction of a tax credit for small-scale producers and a budgetincrease in a direct capital subsidy. One of these consumers is anowner of a farm in Falun, who plans on installing solar panels.The purpose of this study is to estimate the produced electricity fromthe installed PV-system per year and compare this with the yearlyelectricity consumption. From this, different electricity retailers arecompared to reach the shortest payback period and the highest futureprofit. The results show that an installation would cut the electricitycost by almost a half, from approximately 113 700 SEK to 60 000 SEK peryear, with Vattenfall as the optimal retailer. The total electricityproduction from the PV-system would be approximately 30 794 kWh/yearand the payback period 7.5 years. The investment would also befinancially justifiable using the NPV if the life span of the system islonger than 12 years. A sensitivity analysis is conducted to determinethe strength of the result when altering the input parameters. Theparameters used for this is the snow depth and the electricityconsumption, and the result does not change significantly when changingeither of the parameters