;In 2011, the nuclear disaster in Fukushima once again raised the issue of nuclear safety. The government launches a vision for nuclear-free homeland and actively promotes renewable energy. It has been accelerating the development of solar energy through adopting the FIT electricity purchasing mechanism, the Sunshine Rooftop Million PVs, and the Green Energy Rooftop Participation Policy.
An era of low interest rates following the global financial crisis, as well as FIT electricity purchasing mechanism provides reasonable profits and stable cash flows for participators. Besides, the overall cost of installations has also been reduced year by year, making investment in solar photovoltaic systems a worth exploring issue.
Being a worker of banking industry, the writer was very curious and needed to know if the power generation efficiency would meet expectation, bring profits for investors and protect payment resource. This is also why the writer studies the topic.
This Study adopts NPV, IRR, payback, and PI to analyze rooftop-type high-efficiency solar power systems with an installed capacity of 499 KW. The analyses of the financial feasibility cover Taiwan’s 12 areas, from the north to the south, as well as the east. The data of full-sky solar radiation from 2004 to 2016 collected by Xiao Xixun, Huang Kongliang, and Zhang Yaoren (2017) was used to evaluate the capacities of electricity generated in each area. And sensitivity analyses were conducted also based on the said data. The result of analyses showed that all areas in Taiwan are suitable for investment in solar power generation systems in normal situation. However, in the sensitivity analysis section, it was found that Keelung City is not suitable for building solar power system under the circumstance of accelerated reduction in power generation efficiency, higher discount rates, and higher financing rates. The result also demonstrated that the southern areas are more suitable for building solar power systems. In addition, thanks to better price of FIT electricity purchasing mechanism, Miaoli is also suitable for investment. In the five scenarios including normal power generation and sensitivity analysis, the IRR is between 4.184% and 9.951%. Therefore, at the current interest rate level, it is better to use bank financing than to operate with participators’ own funds. It also implies that the payment resource of bank financing is stable.