A novel approach to assessing the cost competitiveness of self-consumption photovoltaic systems

Most existing studies on the cost competitiveness of self-consumption PV systems fail to jointly consider key technical, economic, and user-specific factors—such as the share of PV electricity self-consumed, energy exported or imported from the grid, and time-of-use electricity pricing—all of which significantly influence investment viability. To address these gaps, this study introduces a novel method based on a new model to calculate the unit cost of electricity consumption from the user’s perspective (CEC, in €·kWh−1). The array DC power rating is then optimally sized—assuming ideal orientation and tilt—to minimize CEC. A self-consumption PV system is considered cost-competitive when the annualized minimized CEC is lower than the applicable regulated electricity tariff. Colombia is selected as a case study to demonstrate the novel method due to the limited deployment and analysis of self-consumption PV systems in the country. The method is applied across residential, commercial, and industrial sectors in various locations. The resulting annualized minimized CEC values (0.35–8.85 c€/kWh) are consistently below the corresponding regulated tariffs, demonstrating the economic viability of properly sized PV systems. The method’s adaptability to international tariff frameworks makes it a valuable tool for global application and a useful resource for policymakers and stakeholders.