IEEFA has analyzed how the combination of electric vehicles and solar roofs can make self-consumption an even more profitable option.
How to support residential solar energy: lessons from the United Kingdom and Germany.
The combination of residential solar energy with a small storage system and the electric car is one of the options that can make photovoltaic technology an attractive option even in the absence of incentives.
In a new report, IEEFA analyzed the economic impact of the combination of sunroof, batteries and electric car in light of the different incentives or disincentives possible in Great Britain and Germany.
The choice of the two markets is obviously not random. The latest British initiatives in the field of photovoltaic energy will severely affect the self-consumption sector: after losing government subsidies and being willing to say goodbye to reduced VAT, families wishing to install solar panels in their home will also be forced to surrender their surplus free of charge electric to the national network.
In addition, in both the United Kingdom and Germany, the markets for network services used to balance demand and production continue to favor large fossil-fuel power plants to the detriment of small-scale renewable energy.
” Our analysis consisted of evaluating how many years of savings in electricity, transportation fuel and other sectors would be needed for households to recover their initial investment ,” says the report. ”
The models were developed using real cost data […], so several hypotheses of cost reduction were made to calculate the amortization periods of the new projects until 2030. “
In the United Kingdom, under the current VAT regime for solar products, the amortization time of an autonomous photovoltaic system is estimated at 19 years, with an annual return on investment of -2.7%. Once the reduced VAT rates have been eliminated, another year will be added.
On the contrary, German owners, thanks to the increase in retail electricity prices and a system of supply tariffs, can expect to reimburse the price of their system after six years, with an annual return on investment of 10, 3%.
The report highlights the simple incorporation of an intelligent device that manages controllable loads, such as heat pumps and boilers, to halve the amortization period in the United Kingdom and reduce it significantly in Germany.