Economic Analysis of Residential Photovoltaic Self-Consumption in Ecuador: Simulation Tool

Grid-connected photovoltaic systems in self-consumption mode are designed to operate in parallel with the electricity grid. These systems are gaining interest in Ecuador due to their enormous potential for economic savings, energy independence, and environmental benefits. In this sense, this chapter presents the results obtained through a simulation tool that allows any user to determine a photovoltaic system’s profitability, energy savings, and level of self-consumption. The tool utilizes databases from various sources to assess the solar potential at a specific location. It uses a simplified version of the Perez model to calculate the diffuse irradiance for tilted surfaces. Characteristics such as PV power, tilt, orientation, and installation costs, among others, as well as household-specific features like electricity consumption and location, are inputted as variables. The tool is programmed to automatically calculate billing costs and determine savings and return on investment based on the photovoltaic self-consumption level. Additionally, a sensitivity analysis is conducted to visually depict the results of hundreds of simulations. This research concludes that installing photovoltaic systems is financially viable (with a return on investment of less than 10 years) for buildings with electricity consumption exceeding 1000 kWh/month. For lower consumption levels, profitability depends on the installed capacity and the desired level of self-consumption. Ultimately, this tool provides reliable results regarding solar potential, electricity consumption, and PV production, as evidenced by the comparison with real photovoltaic systems installed in Ecuador.