Assessment of Carbon Credit Value Derived from Rooftop Photovoltaic Systems and Their Contribution to Shortening Project Payback Periods

Abstract

This paper presents an analysis of carbon credit returns from rooftop photovoltaic systems and their role in improving the economic viability of renewable energy projects. The electricity generation performance of an integrated rooftop photovoltaic system was analyzed using PVsyst software version 7.3.1. The electricity generation results obtained from the simulation were then used to calculate greenhouse gas emission reductions. Subsequently, the revenue generated from carbon credits was incorporated into the economic analysis to offset project costs, thereby shortening the project payback period. The study was divided into four case studies. Case 1 did not consider carbon credit revenue, while Cases 2, 3, and 4 considered carbon credit revenues over a 14-year period based on the minimum, average, and maximum carbon credit prices, respectively. The results indicate that the Net Present Value, Internal Rate of Return and Benefit-Cost Ratio of all four cases demonstrate favorable investment feasibility. Furthermore, the project payback period was shortest in Case 4, where the highest carbon credit price was considered, indicating that carbon credit revenue can significantly enhance the economic attractiveness of rooftop photovoltaic projects. The project payback period was reduced from 8.493 years to 7.939 years.