The Challenges for Social and Economic Policy Related to the Energy Transformation - Analysis of Profitability and Minimizing the Risk of Deciding to Invest in a Home Micro-Installation
Purpose: The aim of the article is to analyze the profitability and minimize the risk of making a decision in the investment of a home PV micro-installation. Particular emphasis was placed on the determinants of the boundary conditions at which there is an investment and economic justification for potential investors to make business decisions in the implementation of the project of electricity production for their own needs. Approach/Methodology/Design: The research was carried out using the NPV - Net Present Value of Investment and IRR - Internal rate of Return methods. These methods allowed the authors to calculate the market value of investments with the assumed boundary criteria and to determine the economic efficiency of the investment. The research was carried out in April-March 2021-2022 on a test PV installation in a household. Findings: Installing a photovoltaic system in your household brings many benefits. It should be noted that each kWh produced in a PV installation makes the investor independent of the grid distributor, reduces the consumption of energy from conventional sources, minimizes the emission of pollutants into the atmosphere and favors economic development. In addition, investment in such installations allows for obtaining income from the sale of surplus energy produced. Practical implications: The presented models have shown that the project for their implementation is fully economically justified and will allow investors to make a rational investment decision. These models can be effectively used in other countries, and can also be a starting point for a discussion on the direction of energy development. Originality/Value: Obtaining this data allowed the authors to indicate the directions of improvements that may contribute to obtaining a more reliable assessment of the profitability of the tested installations.