Using real estate market fundamentals to determine the correct discount rate for decentralised energy investments

摘要: Abstract Decentralised renewable energy production (on-site energy) is potentially more profitable than commonly believed, especially in urban areas characterized with well-functioning real estate markets and low property yields. Traditional calculation methods, such as the levelized cost of energy, ignore value on-site can create to owners through capitalizing decreased costs. Past research has found that these methods are very sensitive discount rate, whose selection difficult. Evaluating profitability part underlying two major benefits: yields, defined by markets, be used accurate rates economic created owner quantified. To justify use risk profiles investments compared this paper. Subsequently, a theoretical framework investment risks demonstrated geographical information system analysis modelling rooftop photovoltaics all buildings city Vantaa, Finland. The findings question traditional way equalising larger suggest yields for investments.