Integrated analysis of photovoltaic system externalities in Brazil: public health expenditures, energy quality, architectural aspects and real estate value

Abstract

Photovoltaic solar energy systems is a renewable source that has raised great worldwide interest in recent decades. However, in Brazil still, the cost of photovoltaic (PV) systems is still high, and the current public policies are incipient. From 2014 to 2019, an average growth of 203% per year was observed in the installed PV power systems in Brazil. Such performance can also be justified by a greater understanding of externalities, i.e., external positive and negative impacts inherent to the generation of electric energy. The objective is to understand the economic effects of photovoltaic externalities from different perspectives. The following externalities were studied: air pollution; energy quality; construction element; thermal load and real estate valuation, and all of them were analyzed for the Brazilian scenario. The results indicated that the externality of air pollution, which has impacts on health, estimated from the society perspective, could be worth, at least, 4.12% of the price of the energy generated by PV systems. The losses avoided and the voltage profile, energy quality parameters, may account to 12.61% of the electricity price for utilities, and from the consumer perspective, the externality real estate value may be around 79.44% of the price of the electricity generated by photovoltaic systems. The results of this study indicate that the externalities were, for the most part, positive for PV electric energy generating systems. Thus, considering externalities, it is intended to further understand their relationship with the expansion of the distributed generation of electric energy with PV systems in Brazil.