Value creation calculator for renewable energies and energy efficiency
The aim of this project is to use a software tool to determine in advance the regional and Swiss added value for specific projects. In a first step, this tool will be developed for photovoltaic and solar thermal systems as well as for energy-efficient building renovations.
A purchase or investment decision is rarely made solely on the basis of the required function of the item being purchased. In most cases, secondary effects such as image, visual design, fashion, and comfort are at least as important or even more decisive than the required function. In the energy sector, these secondary effects are often referred to as co-benefits or non-energy-related benefits (NEB).
Value creation from photovoltaic systems
The value creation calculator for PV systems was completed in July. The most important results are summarized in this report. The report is available for download further down this page.
In connection with the construction (or promotion of the construction) of photovoltaic (PV) systems, regional value creation represents such a NEB from an economic perspective: An investment in a PV system not only serves to supply electricity, but also creates or secures jobs. The aim of this study is to answer the question of what proportion of the costs of a PV system remain in the region and how this proportion can be influenced by the construction management.
Studies have already been conducted on the regional value added of PV systems for certain regions in Switzerland and also for Germany. However, there is currently no comprehensive tool that allows the regional value added for the construction of a specific system in Switzerland to be estimated.
Regional value creation is a good indicator for supporting regional and cantonal investments and subsidies in solar power plants. It can be used to show that the money invested not only supports a renewable electricity supply but also supports local businesses and preserves or creates jobs in the region.
The focus of this work was on developing an easy-to-use value creation calculator that can calculate the desired result with as little user input as possible. The calculation of value creation took into account the planning of the system, the manufacture of the material, the installation, and the operation. At the same time, this calculator was used to examine the composition of regional and Swiss value added for small PV systems, such as those that could be installed on a single-family home, and for large PV systems.
Regional and total value added in Switzerland depend, among other things, on the size of the system. For a small EFH system, the maximum possible regional value added corresponds to approximately 33% of the total cost of the system, and for a 1 MW PV system, approximately 55%. The maximum value added remaining in Switzerland varies between 38% and 60%, with the high values again applying to large PV systems (see figure below).
The largest share of value added comes from profits generated during the assumed 25-year operating life of the plant (37% for a small PV plant and 33% for a large PV plant). Regional companies therefore ensure that at least one third of the maximum possible regional value added actually remains in the region.
The amount of the remaining regional or Swiss value added can be influenced by the construction management (shaded in the figures below). The choice of a local installation company accounts for 16 to 20%, and the choice of a regional maintenance company for approximately 12% of the maximum possible regional value added. In contrast, the choice of materials (modules, installation materials) accounts for less than 10% of the maximum possible value added.
A key difference between large and small installations is the value added by the lending bank, which is insignificant in the case of a small installation with low debt capital. With a high debt capital ratio, choosing a regional bank results in 16% of the maximum regional value added being achieved.
In addition, maintenance costs account for a larger proportion of the total costs for large PV plants than for small plants. This is because the investment costs per kW of installed capacity are lower for large plants, but the specific maintenance costs per kW were assumed to be constant. As a result, choosing a regional maintenance company has a greater impact on value creation for large plants than for small plants.
At a glance
Regional (or Swiss) value creation can be increased by the following decisions (in descending order of priority):
- Regional (Swiss) management and capital providers for the PV system
- Choice of a regional (Swiss) bank, if external capital is required
- Choice of a regional (Swiss) installation company
- Choice of a regional (Swiss) maintenance company
- Use of regional (Swiss) installation materials (substructures, cables, and others)
- Use of modules manufactured regionally (in Switzerland)
- Selection of a regional (Swiss) planning company for the PV system
The value creation calculator in Excel can be used to determine the effects of the choice of service providers and the origin of the materials on regional or Swiss value creation for each planned PV system individually.
