The cost of electric energy and its relationship with the photovoltaic energy generation system: a case from a rural property of Leme-SP

摘要

This study analyzes the economic and financial viability of installing a photovoltaic solar energy production system in a rural property located in Leme - SP, Brazil. The main purpose is to understand how the electric energy tariff variation may interfere with the investment decision. The net present value, internal rate of return, scenario analysis, and Monte Carlo simulation are used to investigate the risks involved in tariff changes imposed by the electric utility and the minimum acceptable rate of return requested by pig producers. To conduct the tests, information about energy demanded by the rural property and the costs of electric energy from 2014 to 2019 were collected to estimate the incremental cash flow. The results show a positive net present value when it is considered an interest rate of 6.5 of return and an internal interest rate of 12 per year. Additional tests also provide evidence that the project risk is lower as the energy tariff increases; however, the Monte Carlo simulation suggests that the investment in the photovoltaic energy system is only interesting for the analyzed pig farming whether the minimum acceptable rate of return is lower than 12.5. Besides photovoltaic energy is economically viable it also adds better practices to support agribusiness being more sustainable.