<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The article analyzes electricity prices in Slovakia, their distribution tari component, and their significant impact on small-scale photovoltaic power plants (PVPs). Fixed part of the distribution tari component in Slovakia varies considerably, given the region of operation of the distribution system operator as well as the allocated tari rate. Profitability of the small-scale PVP in Slovakia is widely discussed, with differing opinions of the lay and professional public. The article will explain under what circumstances all the opinions may be true. Profitability predictions available online or done by PVP installers are extremely simplified and lead to misleading results. The existence of fixed and variable components of the price plays a significant role and a simple change of the electricity tari may bring significant savings and shorten the payback time of the PVP investment. However, this is a complex issue and requires several other factors to be considered, too. The most important ones are the fixed component of the electricity price, household consumption diagram and the distribution system to which the household is connected.</p>
</abstract>

The article analyzes electricity prices in Slovakia, their distribution tari component, and their significant impact on small-scale photovoltaic power plants (PVPs). Fixed part of the distribution tari component in Slovakia varies considerably, given the region of operation of the distribution system operator as well as the allocated tari rate. Profitability of the small-scale PVP in Slovakia is widely discussed, with differing opinions of the lay and professional public. The article will explain under what circumstances all the opinions may be true. Profitability predictions available online or done by PVP installers are extremely simplified and lead to misleading results. The existence of fixed and variable components of the price plays a significant role and a simple change of the electricity tari may bring significant savings and shorten the payback time of the PVP investment. However, this is a complex issue and requires several other factors to be considered, too. The most important ones are the fixed component of the electricity price, household consumption diagram and the distribution system to which the household is connected.

Impact of the fixed and variable component of electricity price on the economic viability of a small-scale photovoltaic power plant

Slovak University of Technology in Bratislava

Faculty of Electrical Engineering and Information Technology

Journal of Electrical Engineering

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The article analyzes electricity prices in Slovakia, their distribution tari component, and their significant impact on small-scale photovoltaic power plants...

Impact of the fixed and variable component of electricity price on the economic viability of a small-scale photovoltaic power plant

Published Online: May 12, 2021

Page range: 140 - 147

Received: Feb 17, 2021

DOI: https://doi.org/10.2478/jee-2021-0020

Keywords
electricity price, fixed and variable components, prosumer, profitability, optimization, consumption diagram

© 2021 František Janíček et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Impact of the fixed and variable component of electricity price on the economic viability of a small-scale photovoltaic power plant

Published Online: May 12, 2021

Page range: 140 - 147

Received: Feb 17, 2021

DOI: https://doi.org/10.2478/jee-2021-0020

Keywordselectricity price, fixed and variable components, prosumer, profitability, optimization, consumption diagram

© 2021 František Janíček et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
electricity price, fixed and variable components, prosumer, profitability, optimization, consumption diagram