Analyzing the impact of environmental variables on the repayment time for solar farms under feed-in tariff

Abstract

Environmental concerns have promoted the rise of low emissions ``green'' power technologies such as solar power. In part to make these technologies of economic interest to investors, many green energy policies have been proposed, and a wide variety of green energy developments have been launched which take advantage of these policies. This paper studies the impact of the unpredictable solar insolation on two variables of key interest to solar plant developers: the repayment time and the cash flow at risk.