Pre-feasibility of wind and solar systems for residential self-sufficiency in four urban locations of Colombia: Implication of new incentives included in Law 1715

The results show that the wind system fails to obtain a desirable financial result from investment at any location under study, even when considering new legal incentives. However, the solar PV system can be amortized in all locations within its lifetime. By applying the incentives of Law 1715 (Value Added Tax and customs tax exclusions), it was possible to obtain a payback period for the proposed system between 11.3 and 13.8 years depending on the socioeconomic strata where implemented. Implementation of the legal incentives represents approximately four years of additional economic utility for the investor.