The Profitability of Households’ Solar Power Generation in Finland

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School of Business | Bachelor's thesis

Date

2017

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Mcode

Degree programme

Taloustiede

Language

en

Pages

33

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Abstract

To achieve the goal to have a proportion of renewable energy corresponding to 20 per cent of total energy consumption set by the EU's Renewable Energy Directive, the amount of renewable energy has to be increased substantially. Finland has mostly invested in wind power and biofuel to meet the requirements. However, solar power has potential to have a bigger part in renewable energy generation, despite Finland’s geological location. Germany has successfully increased the amount of renewable energy by using solar power. As Southern Finland receives about the same amount of sunlight as Northern Germany, it makes sense to start considering supporting solar power generation. In this bachelor’s thesis, I will be inspecting the profitability of solar power generation in households in Finland. The calculations will include solar PV systems of two sizes; 3 kWp and 5 kWp. Because solar PV systems are not profitable without support system, I will be introducing Feed-in Tariff –policy from Germany and Tradable Green Certificate –policy from Sweden. The required amount of subsidies will be estimated for both feed-in tariff system and tradable green certificates system. Then I will proceed to compare these two policies to determine which one would be the most efficient one to increase renewable energy production in Finland.

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Thesis advisor

Murto, Pauli

Keywords

solar power, feed-in tariffs, tradable green certificates, cost-efficiency

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