The post COVID-19 green recovery in practice: Assessing the profitability of a policy proposal on residential photovoltaic plants

Idiano D'Adamo; Massimo Gastaldi; Piergiuseppe Morone

doi:10.1016/j.enpol.2020.111910

The post COVID-19 green recovery in practice: Assessing the profitability of a policy proposal on residential photovoltaic plants

Energy Policy. 2020 Dec:147:111910. doi: 10.1016/j.enpol.2020.111910. Epub 2020 Sep 23.

Authors

Idiano D'Adamo¹, Massimo Gastaldi², Piergiuseppe Morone³

Affiliations

¹ Department of Computer, Control and Management Engineering, Sapienza University of Rome, Via Ariosto 25, 00185, Rome, Italy.
² Department of Industrial Engineering, Information and Economics, University of L'Aquila, Via G. Gronchi 18, 67100, L'Aquila, Italy.
³ Department of Law and Economics, Unitelma Sapienza - University of Rome, Viale Regina Elena 295, 00161, Roma, Italy.

Abstract

The development of photovoltaic (PV) energy has been very significant in the last years, thanks to cost reductions brought about by policy actions favouring the transition from a fossil to a green society. As this transition is likely to stretch over the long term, policy support must be programmed accordingly. In light of the human and economic shock effected by COVID-19, the Italian government has offered a tax deduction of 110% over 5 years for the realization of new PV residential plants. We propose to integrate this tool with the application of a bonus for energy produced and self-consumed, in order to support the development of decentralized systems. In this paper, we provide an economic assessment of a 3 kW plant in the context of several policy scenarios. The results underline the great opportunity for consumers to tackle climate change whilst obtaining relevant economic profits. The study can be replicated on a global scale.

Keywords: COVID-19; Economic analysis; Photovoltaic; Policy proposal; Self-consumption.