On-Grid Hybrid Wind–Solar Power Plants in Ukraine’s Residential Sector: Economic Justification of Installation Under Different Support Schemes

Abstract

On-grid hybrid wind–solar systems are one of the best sustainable solutions for developing distributed generation, as they can provide a stable and reliable electricity supply, effectively using the potential of the two most common renewable energy resources. In Ukraine, promoting the development of on-grid hybrid wind–solar power plants takes on particular importance under conditions of electricity shortages caused by the large-scale destruction of the energy infrastructure due to the ongoing hostilities. This article examines the economic efficiency of installing such power plants in the residential sector of Ukraine under different state support schemes. This study was conducted for on-grid hybrid wind–solar systems of various configurations and installed capacities with different equity and debt capital proportions involved in implementing investment projects. This study’s results highlight the economic efficiency of the feed-in tariff compared to the net billing for households investing in such facilities and emphasize the need to improve policy measures to increase their investment attractiveness.

Keywords

• on-grid hybrid wind–solar power plants
• renewable energy
• residential sector
• feed-in tariff
• net billing
• energy policy