PV projects to have investment payback periods of 10-15 yrs

TAIPEI: The 20-year feed-in tariffs for the installation of photovoltaic (PV) system projects in Taiwan are expected to have investment payback periods of 10 years to15 years.

The Ministry of Economic Affairs of Taiwan had, on December 18, 2009, determined the feed-in tariffs for power-generating projects for renewable energy, with grid-connected electricity, to be bought at a fixed rate for 20 years, according to sources on the industry.

Investment in a photovoltaic project, based on the feed-in tariffs and assuming 100% equity funding, could be paid back in 10 years to 11 years in southern Taiwan, in 15 years in northern Taiwan, and in 12 years to 13 years in central Taiwan owing to varying sunlight.

Taiwan’s Ministry of Economic Affairs, in spite of the expected high return on investment, may limit the total installations of photovoltaic systems by setting quotas or high barriers of entry when granting subsidies, the industry sources said.