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New Opportunities for Investments in Solar Energy. Explorative Study of a Novel Business Model for Small Investments in Solar Energy in Switzerland and in Portugal

Schmid, Aurel LU (2015) In IIIEE Master thesis IMEN41 20151
The International Institute for Industrial Environmental Economics
Abstract
The Solar energy is playing a fundamental role in the transition to a low carbon electricity production system. Driven by rapidly decreasing prices for solar installations in the last years, the solar energy market in Europe is currently undergoing a transformation. Subsidies such as feed-in tariffs are being phased out and replaced with the possibility to self-consume solar energy, earning a profit by buying less electricity from the grid. This change creates opportunities for new innovative business models such as the one examined in this study. Concretely, this study carries out an explorative case study to assess the financial viability of a business model for small-scale investors in off-site solar energy in Switzerland and in... (More)
The Solar energy is playing a fundamental role in the transition to a low carbon electricity production system. Driven by rapidly decreasing prices for solar installations in the last years, the solar energy market in Europe is currently undergoing a transformation. Subsidies such as feed-in tariffs are being phased out and replaced with the possibility to self-consume solar energy, earning a profit by buying less electricity from the grid. This change creates opportunities for new innovative business models such as the one examined in this study. Concretely, this study carries out an explorative case study to assess the financial viability of a business model for small-scale investors in off-site solar energy in Switzerland and in Portugal. Additionally, interviews with potential investors have been made to explore perceived advantages and disadvantages and to analyse how the saving and investment preferences of potential investors align with this business model. The study concludes that the examined business model is financially viable for medium sized projects in Switzerland but even more for large projects in in Portugal. However, a number of challenges have been identified. For instance, legal questions in regard to ownership and guaranteeing the continued operation need to be resolved. Additionally, very efficient management procedures by the implementing company are required to bring down administrative costs and to ensure its own financial viability, which is mandatory to earn buyers’ trust and money. (Less)
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author
Schmid, Aurel LU
supervisor
organization
course
IMEN41 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Solar Energy, Renewable Energy, Investment Decision Process, Sustainable Investment, Business Models, Switzerland, Portugal
publication/series
IIIEE Master thesis
report number
2015:29
ISSN
1401-9191
language
English
id
8054627
date added to LUP
2015-10-13 08:38:32
date last changed
2015-10-13 08:38:32
@misc{8054627,
  abstract     = {The Solar energy is playing a fundamental role in the transition to a low carbon electricity production system. Driven by rapidly decreasing prices for solar installations in the last years, the solar energy market in Europe is currently undergoing a transformation. Subsidies such as feed-in tariffs are being phased out and replaced with the possibility to self-consume solar energy, earning a profit by buying less electricity from the grid. This change creates opportunities for new innovative business models such as the one examined in this study. Concretely, this study carries out an explorative case study to assess the financial viability of a business model for small-scale investors in off-site solar energy in Switzerland and in Portugal. Additionally, interviews with potential investors have been made to explore perceived advantages and disadvantages and to analyse how the saving and investment preferences of potential investors align with this business model. The study concludes that the examined business model is financially viable for medium sized projects in Switzerland but even more for large projects in in Portugal. However, a number of challenges have been identified. For instance, legal questions in regard to ownership and guaranteeing the continued operation need to be resolved. Additionally, very efficient management procedures by the implementing company are required to bring down administrative costs and to ensure its own financial viability, which is mandatory to earn buyers’ trust and money.},
  author       = {Schmid, Aurel},
  issn         = {1401-9191},
  keyword      = {Solar Energy,Renewable Energy,Investment Decision Process,Sustainable Investment,Business Models,Switzerland,Portugal},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Master thesis},
  title        = {New Opportunities for Investments in Solar Energy. Explorative Study of a Novel Business Model for Small Investments in Solar Energy in Switzerland and in Portugal},
  year         = {2015},
}