Evaluating solar energy profitability: A focus on the role of self-consumption

• Investment profitability for realisation of PV facilities in Italy is analysed.
• Self-consumption can support the economic sustainability of photovoltaic facilities.
• A survey was conducted on 750 companies operating in various stages of supply chain.
• The economic feasibility of PV investment is evaluated for systems of varying sizes.
• The investments are located in two areas of the country to account for different levels of insolation.

Renewable energies have a key role in defining an energy policy based on security, independence, and sustainability. The Italian market is characterised by the absence of support mechanisms for photovoltaic sources for electricity and by a high level of maturity in the energy market. Consequently, this paper contributes to, and advances, the debate concerning self-consumption that can support the economic sustainability of photovoltaic facilities. We constructed a database to conduct an analysis. A survey was conducted among 750 companies operating in various stages of the industry supply chain. The survey collected data related to industry turnover, profitability levels, profitability margins of the business areas and employee numbers. The economic feasibility of photovoltaic investment is evaluated for systems of varying sizes (3 kW, 20 kW, 200 kW, 400 kW, and 1 MW) located in two areas of the country to account for different levels of insolation (northern and southern regions). The indicators used are net present value (NPV) and discounted payback time (DPBT). A subsequent sensitivity and scenario analysis is conducted according to the share of self-consumption, investment costs, and financial structure to examine 210 case studies.