Investment Value Analysis of Household Rooftop PV Power Generation Project under Carbon Trading Mode

Abstract

This paper firstly takes Zhongshan City as an example and uses the net present value (NPV) and internal rate of return (IRR) to analyze the investment value of household rooftop PV power generation project under carbon trading mode. The objective of the paper is to provide a new incentive model for PV users in China, which plays an important role in promoting the further development of household PV in China. The results show that the current level of carbon price in Guangdong Province is not enough to promote residents' investment in rooftop PV. Then, this paper further studies the impact of carbon price on the investment value of household rooftop PV power generation project. Finally, in order to promote investment from residents, this paper puts forward the following two conclusions and policy suggestions: firstly, the government should encourage the carbon trading mode and raise the carbon price level in China; secondly, China should actively guide household rooftop PV to develop itself into a market-oriented development mode through carbon trading that no longer needs subsidies.