Economic Evaluation of photovoltaic plants in Greece under the recently introduced de-escalating Feed-in-Tariff policy

The present paper investigates the economic viability of an investment in photovoltaics, or solar panels, in Greece. The point in time of our research is critical, as the recently introduced de-escalating Feed-In-Tariff policy signals important changes in the options of a potential investor and the Greek electricity market on the whole. The structure of the paper as financial report analysis gives intuition over the several choices available to a potential investor. The presented current market and legal background frames the potential of the investment. The analytical part in implemented under the capital budgeting methodology, including Cash Flows Analysis, NPV Analysis, IRR and robustness check with Ratio Analysis and the Simple Payback Method. Implementing the methodology mentioned and with the help of sensitivity and scenario analysis, the results illustrate the choices that a potential investor has in short-term horizon and how these choices can affect the project’s efficiency.