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

dc.contributor.authorAquila G.
dc.contributor.authorRotella Junior P.
dc.contributor.authorRocha L.C.S.
dc.contributor.authorBalestrassi P.P.
dc.contributor.authorPamplona E.D.O.
dc.contributor.authorNakamura W.T.
dc.date.accessioned2024-09-01T06:14:22Z
dc.date.available2024-09-01T06:14:22Z
dc.date.issued2024
dc.description.abstract© 2024 Elsevier LtdThere 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.
dc.description.volume232
dc.identifier.doi10.1016/j.renene.2024.121154
dc.identifier.issnNone
dc.identifier.urihttps://dspace.mackenzie.br/handle/10899/39249
dc.relation.ispartofRenewable Energy
dc.rightsAcesso Restrito
dc.subject.otherlanguageDistributed generation
dc.subject.otherlanguageNet billing
dc.subject.otherlanguageNet metering
dc.subject.otherlanguagePolicy schemes
dc.subject.otherlanguageSustainable electricity
dc.titleNet metering rolling credits vs. net billing buyback: An economic analysis of a policy option proposal for photovoltaic prosumers
dc.typeArtigo
local.scopus.citations3
local.scopus.eid2-s2.0-85201066923
local.scopus.subjectBreak-even prices
local.scopus.subjectCompensation mechanism
local.scopus.subjectEconomics analysis
local.scopus.subjectNet billing
local.scopus.subjectNet metering
local.scopus.subjectPhotovoltaics
local.scopus.subjectPolicy options
local.scopus.subjectPolicy schemes
local.scopus.subjectSustainable electricity
local.scopus.subjectThe net present value (NPV)
local.scopus.updated2025-04-01
local.scopus.urlhttps://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85201066923&origin=inward
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