Impact of the Self-Consumption of Electricity on the Profitability of the Investment into a Photovoltaic Installation: The Case of a Company in Poland
Purpose: The main aim of this paper is an attempt to calculate the impact of the self-consumption of electricity in an exemplary enterprise with the annual electricity demand 42.2 MWh on the profitability of investments in a photovoltaic installation from the point of view of the law introduced in Poland in 2021 - 2022. Approach/Methodology/Design: The analysis of the profitability of the photovoltaic power plant was carried out on the basis of the method of assessing the economic efficiency of an investment using the DCF method with the assumed discount rate. Findings: The obtained results can estimate the future value of the investment, capitalization, discounted value, i.e., the present capital value, which is derived from future income. Practical Implications: The obtained results will help to indicate what is the optimal (maximum) selection of the size of the photovoltaic installation based on the company's electricity demand in the Net-billing system applicable in Poland. Originality/Value: The obtained results may indicate that investing more capital in photovoltaics allows for the construction of an installation with greater power, but at the same time leads to a reduction in the self-consumption of electricity during its production and significantly affects the profitability of such an investment. Profitability estimation was carried out with reference to an alternative investment in relatively low-risk treasury bonds. The economic net present value assumes that the future buying or selling value of money will not be the same as it is today. Factors that significantly affect the investment profitability assessment are given.