5. PROFITABILITY
5.1. Incoming Saving Profitability
The incoming saving profitability results would be presented using the set of system sizes in presenting the results in chapter 3 and chapter 4 of this study for all the fur farms, the food factory and community electricity consumption respectively. The highlighted system sizes in Table 50 to 56 are the exact capacities needed to meet the current and the future electricity consumption in each case. In this chapter the highlighted green color is for the current scenario and pink is for the future scenario.
Some of the key parameters used in estimating the income saving profitability are the; electricity cost Ecost in both current and future, purchased cost Pcost, saved cost Scost, income saving Isaving
and the total cost Tcost. The current and future costs are the actual amounts the electricity consumption will cost without the use of solar PV while the purchased cost is how much the electricity would cost with the use of solar PV. The saved cost is the actual difference between the electricity cost and the purchased cost. Also, the income savings is the amount earned from selling solar production to the grid while the total savings is the addition of the saved cost and income savings made. Furthermore, each of the parameter is expressed in (8) to (12), where Ebuying and Eselling represents the electricity buying and selling prices respectively. Edemand
represents the electricity consumption demand, Psolar is the electricity purchase cost with solar PV and Gsales is the sales to the grid. The results of the income savings profitability would be presented on a yearly basis for each capacity and for all the cases.
𝐸cost = 𝐸demand(𝑘𝑊ℎ) × 𝐸buying ( €
𝑘𝑊ℎ) (8)
𝑃cost = 𝐸cost(€) − 𝑃solar(€) (9) 𝑆cost = 𝐸cost(€) − 𝑃cost(€) (10) 𝐼saving= 𝐺sales (𝑘𝑊ℎ) × 𝐸seling( €
𝑘𝑊ℎ) (11) 𝑇saving= 𝑆cost(€) + 𝐼saving(€) (12)
This is to give the recipient a better understanding of how much each of this capacity is able to yield annually. In addition, the buying price and the selling price of electricity used in this study to estimate the income savings are collected from statistics Finland [24] and Nord pool [25]
precisely. The 2017 electricity buying price of 12.69 cent/kWh for the agricultural sector from statistic Finland which consists of electrical energy, distribution and taxes is used in estimating the electricity cost while the Nordic price of 46.50 euro/MWh is used to estimate the income saving.
From Table 50 to 56, it can be observed the current and future electricity cost remains the same for each case, and this because the electricity consumption remains the same every year in all the cases. Also, from the results it can be observed the purchase cost reduces as the saved cost increases with the use of solar PV and the income saving is expected to increase continuously with an increase in the system sizes. An exception is observed in the case of the food factory as shown in Table 54, where there is no income saving from 1 kWp to 50 kWp and this is due to high electricity consumption demand which gives no opportunity for grid sales to occur and this makes these system sizes affordable and viable. However, income savings begin to occur gradually from a system size of 480 kWp above.
Table 50. Yearly income saving profitability for Farm 1.
Current Profits Future Profits
System sizes(kWp)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
1 3176.6 3084.1 92.5 9.0 101.5 4714.9 4257.3 108.5 3.1 111.7
2 3176.6 3028.4 148.2 31.6 179.8 4714.9 4170.1 195.7 140.8 336.5
3 3176.6 2983.4 193.3 58.0 251.3 4714.9 4091.4 274.4 281.7 556.1
4 3176.6 2946.0 230.6 87.3 317.9 4714.9 4364.2 350.6 43.2 393.8
5 3176.6 2915.4 261.2 119.1 380.3 4714.9 4293.0 421.9 60.0 481.9
6 3176.6 2889.8 286.8 152.7 439.5 4714.9 4225.1 489.8 78.0 567.8
7 3176.6 2868.0 308.6 187.6 496.2 4714.9 4159.8 555.1 97.0 652.1
27 3176.6 2700.6 475.9 984.8 1460.7 4714.9 3402.1 1312.8 677.4 1990.2
30 3176.6 2689.1 487.5 1109.3 1596.8 4714.9 3352.6 1362.3 788.0 2150.3
35 3176.6 2672.7 503.9 1317.8 1831.7 4714.9 3289.6 1425.3 979.4 2404.7
40 3176.6 2658.5 518.1 1527.1 2045.3 4714.9 3241.2 1473.7 1176.2 2649.9
Table 51. Yearly income saving profitability for Farm 2.
Current Profits Future Profits
System sizes(kWp)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
1 4780.9 4676.9 104.0 5.7 109.7 6229.5 6117.7 111.8 2.8 114.6
2 4780.9 4608.9 172.0 24.6 196.6 6229.5 6026.0 203.5 13.1 216.5
3 4780.9 4556.4 224.5 49.3 273.8 6229.5 5944.8 284.6 27.2 311.8
4 4780.9 4512.4 268.5 77.0 345.5 6229.5 5870.1 359.4 43.6 403.0
5 4780.9 4474.5 306.4 107.0 413.4 6229.5 5799.5 430.0 61.5 491.5
6 4780.9 4442.1 338.8 139.0 477.8 6229.5 5732.8 496.6 81.0 577.6
7 4780.9 4413.9 367.0 172.6 539.6 6229.5 5669.2 560.3 101.4 661.7
27 4780.9 4171.0 609.9 960.1 1570.0 6229.5 4880.1 1349.4 688.4 2037.8
30 4780.9 4155.4 625.5 1085.8 1711.3 6229.5 4823.6 1405.9 799.1 2205.0
39.8 4780.9 4116.6 664.3 1500.9 2165.2 6229.5 4695.7 1533.8 1181.5 2715.3
51.9 4780.9 4084.1 696.8 2019.1 2175.9 6229.5 4603.4 1626.1 1677.7 3303.8
Table 52. Yearly income saving profitability for Farm 3.
Current Profits Future Profits
System sizes(kWp)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
1 9819.1 9699.8 119.3 0.1 119.4 12380.7 12261.3 119.4 0.0 119.4
2 9819.1 9590.8 228.3 3.9 232.2 12380.7 12147.1 233.6 1.9 235.5
3 9819.1 9502.7 316.4 15.5 331.9 12380.7 12044.6 336.1 8.2 344.3
4 9819.1 9429.9 389.2 32.6 421.8 12380.7 11950.9 429.8 17.7 447.5
5 9819.1 9366.3 452.8 53.2 506.0 12380.7 11862.9 517.8 29.3 547.1
20 9819.1 8789.0 1030.1 499.7 1529.8 12380.7 10810.1 1570.6 300.9 1871.5
40 9819.1 8459.2 1359.9 1255.6 2615.5 12380.7 9936.7 2444.0 857.1 3301.1
60 9819.1 8299.0 1520.1 2073.3 3593.4 12380.7 9454.3 2926.4 1556.3 4482.8
81.8 9819.1 8188.2 1630.9 2987.8 4618.7 12380.7 9183.0 3197.7 2411.9 5609.5 103.3 9819.1 8106.1 1713.0 3899.6 5612.6 12380.7 9016.8 3363.9 3292.9 6656.8
Table 53. Yearly income incoming saving profitability for Farm 4.
Current Profits Future Profits
System sizes(kWp)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
1 1726.8 1628.7 98.1 7.8 105.9 3142.7 3037.0 105.7 5.0 110.7
2 1726.8 1565.5 161.3 28.4 189.7 3142.7 2956.3 186.4 19.2 205.6
3 1726.8 1516.0 210.8 54.0 264.8 3142.7 2885.5 257.2 37.0 294.2
4 1726.8 1475.8 251.0 83.0 334.0 3142.7 2822.1 320.5 57.6 378.1
5 1726.8 1443.4 283.4 114.9 398.3 3142.7 2764.8 377.9 80.3 458.2
6 1726.8 1417.1 309.7 149.1 458.8 3142.7 2711.7 431.0 104.6 535.6
14.4 1726.8 1303.6 423.2 475.3 898.5 3142.7 2343.2 799.5 337.1 1136.6
20 1726.8 1266.9 459.9 707.1 1167.0 3142.7 2148.9 993.8 511.0 1504.8
26.3 1726.8 1238.0 488.8 972.5 1461.3 3142.7 1982.6 1160.1 725.8 1885.9
Table 54. Yearly income saving profitability for the food factory.
Current Profit System sizes(kWp) Current
Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
100 898356.0 886653.9 11702.1 0.0 11702.1
200 898356.0 874951.7 23404.3 0.0 23404.3
300 898356.0 863249.6 35106.4 0.0 35106.4
400 898356.0 851547.4 46808.6 0.0 46808.6
500 898356.0 839847.4 58508.6 0.8 58509.4
600 898356.0 828161.9 70194.1 6.9 70201.0
700 898356.0 816501.4 81854.6 22.2 81876.8
800 898356.0 804883.1 93472.9 53.1 93526.0
900 898356.0 793388.6 104967.4 129.4 105096.8
1000 898356.0 782280.4 116075.6 347.5 116423.1
7664 898356.0 601186.5 297169.5 219857.9 517027.4
Table 55. Yearly income saving profitability for southwest direction energy community.
Current Profit Future Profit
System sizes(kWp)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
1500 917859.6 756833.0 161026.6 5320.9 166347.5 924823.8 762010.6 162813.2 4664.3 167477.5
2000 917859.6 727491.6 190368.0 16015.3 206383.3 924823.8 731753.3 193070.5 15022.2 208092.7 2500 917859.6 706729.9 211129.7 29855.3 240985.0 924823.8 710481.2 214342.6 28674.7 243017.3 3000 917859.6 690678.2 227181.4 45422.0 272603.4 924823.8 694108.1 230715.7 44123.3 274839.0 3500 917859.6 677438.3 240421.3 62019.8 302441.1 924823.8 680662.1 244161.7 60645.5 304807.2 4000 917859.6 666379.7 251479.9 79417.3 330897.2 924823.8 669389.6 255434.2 77964.4 333398.6 4500 917859.6 656984.8 260874.8 97424.7 358299.5 924823.8 659854.2 264969.6 95920.4 360890.0 5000 917859.6 648923.0 268936.6 115920.6 384857.2 924823.8 651691.7 273132.1 114379.5 387511.6 7831 917859.6 616809.6 301050.0 225603.7 526653.7 924823.8 619068.1 305755.7 223875.4 529631.1 7890 917859.6 616316.0 301543.6 227953.9 529497.5 924823.8 618564.1 306259.7 226221.8 532481.5
Table 56. Yearly income saving profitability for southeast direction energy community.
Current Profits Future Profits
System sizes(kWp)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
Current Cost (€)
Purchased Cost (€)
Saved Cost (€)
Income Saving(€)
Total Savings(€)
1500 917859.6 752306.6 165553.0 5009.6 170562.6 924823.8 758099.3 166724.5 4579.0 171303.5 2000 917859.6 721542.2 196317.4 15630.1 211947.5 924823.8 726302.6 198521.2 14820.2 213341.4
2500 917859.6 699992.7 217866.9 29628.8 247495.7 924823.8 704033.1 220790.7 28554.3 249345.0 3000 917859.6 683932.2 233927.4 45640.9 279568.3 924823.8 687560.6 237263.2 44415.1 281678.3 3500 917859.6 671077.3 246782.3 62828.6 309610.9 924823.8 674432.3 250391.5 61502.4 311893.9 4000 917859.6 660303.5 257556.1 80779.2 338335.3 924823.8 663470.4 261353.4 79383.9 340737.3 4500 917859.6 650737.9 267121.8 99172.4 366294.2 924823.8 653772.2 271051.6 97728.4 368780.0 5000 917859.6 642299.8 275559.8 117979.0 393538.8 924823.8 645217.8 279606.0 116492.4 396098.4 7670 917859.6 611359.3 306500.3 223584.4 530084.7 924823.8 613741.4 311082.4 221901.3 532983.7 7728 917859.6 610881.2 306978.4 225949.6 532928.0 924823.8 613253.9 311569.9 224263.0 535832.9
Furthermore, the results presented in Table 55 and 56 shows the income savings profitability that could be realized when the overall consumption of all the fur farms including the food factory is considered as an energy community consumption coupled with the solar PV investment. It can be observed there is high purchased cost and low cost saved at the southwest compared to the southeast, and this is due low production output in this direction. Also, the southwest direction has a high income saving than cost saved and this due to more grid sales.
However, this is different at the southeast direction as the cost saved is higher than the income savings derived from selling to the grid and this makes the total savings at the southeast to be higher than the southwest capacities. On the whole, it can be deduce from the results obtained in all cases excepts for the food factory, that the current income savings is higher than the future, and this is due to increase in the electricity demand that is excepted to take place in the future.