Investing in Green Energy:

Profitability Analysis of Solar Energy for Household Consumption in

Albania

MARIOLA KAPIDANI, ENI NUMANI

Department of Finance, Faculty of Economy,

University of Tirana,

Street “Arben Broci’, Tirana,

ALBANIA

Abstract: - Exhaustion of conventional non-renewable energy sources together with climate change mitigation

presents challenges for policy makers globally. An alternative to address the increased demand for energy with

less negative impacts on the environment is using renewable energy sources whose reserves are supplemented

by natural ecosystems. Furthermore, EU directives impose actions on Member States for the reduction of

pollution from conventional sources. Countries must aim to increase the share of renewable energy sources in

energy consumption, as significant measures towards sustainable development. However, several factors affect

the succession of green energy adoption, where financial considerations remain key determinants in decision-

making by companies, families, and institutions. The study conducts a cost-benefit analysis using methods of

capital budgeting to evaluate the profitability of solar energy for household consumption in Albania. The paper

aims to provide insights into the potential of green energy investment in Albania, focusing on the solar energy

sector and financial factors that are relevant to these investments’ succession. Data analysis and forecasting are

conducted for a lifespan of 30 years, assessing average data of electricity prices, the productivity of solar

panels, direct costs of investment, interest rates, exchange rates, and inflation rates. The study concludes that

investing in solar panels for household consumption in Albania is profitable, as it is reported that discounted

benefits exceed the investment cost.

Key-Words: - green energy, solar energy, solar panels, sustainable energy sources, profitability, cost-benefit

analysis.

Received: June 19, 2023. Revised: October 21, 2023. Accepted: November 23, 2023. Available online: December 15, 2023.

1 Introduction

The demographic changes that have occurred in

recent years, associated with the increase in

population concentration in urban centers but also

with the increase in energy consumption as a result

of the higher use of electric equipment, highlight the

need to address alternative sources of energy

production. Albania, with a population of about 2.85

million inhabitants, uses hydropower as the main

source of electricity supply, thus being ranked

among the countries with abundant sources of

renewable energy, [1]. The use of hydropower

offers an advantage in reducing CO2 in the energy

sector; however, it makes the country highly

dependent and sensitive to climate change. Another

indicator is the fluctuation in the level of energy

production from hydropower plants, which is related

to the level of rainfall in the country. This leads to

an increase in the import of electricity, also reflected

in the financial cost of the sector. According to

official statistics, the residential building sector in

Albania constitutes almost 54% of the total

electricity consumption, increasing the cost of

electricity supply mainly due to an augmentation in

imports in the winter season. Thus, the need for a

higher diversification of renewable energy sources

produced in the country should be taken into

consideration, aiming to use not only cost-effective

technologies but with the primary focus on

mitigating the long-term effects on the country's

environmental parameters, [2].

Regarding the developments in the region, the

energy transition to sustainable energy sources is

gradually taking place in Southeast Europe, even

though not all the countries are actively taking

significant incentives, [1], [3]. The region

traditionally uses older technology, predominantly

by highly polluting power plants that should be

immediately transitioned to renewable technologies

within the parameters to reduce emissions.

Moreover, the countries in the region that are part of

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

345

Volume 21, 2024

the EU have committed under the Paris Agreement,

to stop using fossil fuels by 2050. These measures

include coal which must be replaced earlier as an

energy source, but also oil and gas reduction. In the

coming years, it is expected to include all the

Western Balkan countries in this agreement, as

important measures of sustainable development

goals, aiming the reduction of environmental effects

of the energy sector, [3].

Currently, several measures have been taken in

Albania, both by private entities and by public

institutions responsible for incentivizing the use of

solar energy, as a criterion to lower the financial

costs of energy but also as a form of increasing

energy sustainability. Mainly, there is an increase in

adopting solar energy, especially for water heating

by family consumers, companies, and to a lesser

extent public institutions. However, the initial

financial costs of investing in solar panels,

installation, and maintenance, are determining

factors in whether consumers are encouraged to

"transition" to green energy by different entities, [4].

Effective energy generation, transmission, and

expanded use are critical to the country’s overall

development agenda. Albania is expected to

advance its energy-generating capabilities,

especially focusing on developing hydropower and

renewable energies, [2], [4]. The country’s clean

energy sector offers many benefits in relation to

hydropower and solar energy.

This paper aims to address the recent

developments in the renewable energy sector in

Albania, focusing on the potential of solar energy

profitability for household consumers. Quantitative

data analysis is conducted using methods of capital

budgeting to assess the profitability of solar panels,

taking into consideration the different cost aspects

of the sector. The study evaluates the expected

values of electricity prices for 30 years and assesses

the outputs of the solar panels in financial terms for

the given interval. The study aims to contribute to

the current literature on solar energy profitability, by

providing evidence from the case of Albania

regarding the use of solar energy in household

consumption through capital budgeting analysis by

using: NPV, IRR, and Payback period.

2 Overview of Albania’s Renewable

Energy Sector

Albania uses different resources of energy varying

from the most traditional ones such as oil and gas,

hydropower, natural forest biomass, coal, and other

renewable energy sources. The largest share of the

total energy supply in Albania is attributed to oil

(64%), followed by hydropower (22%) and

fuelwood (12%), according to World Bank data.

Sectors such as: transportation, household, and

industry consume the highest amounts of energy,

respectively at 44%, 23%, and 13%. However, the

primary source of electricity generation from

renewable sources is hydropower, constituting 95%

of the country’s installed capacity with a total of

2096 MW installed, [4]. According to EUROSTAT

statistics, [5], the energy share in Albania from

renewable energy sources reached 45,01% of the

total energy consumption in 2020, exceeding the

target of 38%. The significant increase, is among

other factors, attributed to the Covid-19 pandemic

which led to a considerable shortage in energy

consumption, mainly evident in the transport sector.

The share of energy from renewable sources in

Albania, 2010-2020 is presented in Figure 1.

Fig. 1: Share of energy from renewable sources in

Albania, 2010-2020.

Source: EUROSTAT 2022; Energy Community

Secretariat, [5], [6].

In recent years, Albania has shifted its energy

efficiency policy as part of the country’s strategy to

boost investments in green energy sources and

prioritize such resource usage, [6]. However, these

incentives should be strengthened by adapting fiscal

policies, and support plans and by enhancing the

framework of the sector regulations. The energy

sector in Albania is also vulnerable to a high

dependency on hydroelectricity and despite the

country’s vast water resources, hydropower

potential is achieved at a moderate level of 35%,

[7]. According to the study by the World Bank, this

context of hydropower deployment is explained in

part due to the limited financial viability and limited

cost-recovery schemes currently in place,

accounting for the low level of investment into the

sector.

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

346

Volume 21, 2024

Taking into consideration the climate conditions

of Albania, it presents a considerable potential for

producing renewable energy and more specifically

solar energy. Solar insolation in Albania is very

high with more than 1500 kWh/m2 annually

throughout the territory of the country, with peaks

of 1753 kWh/m2 annually, where the western part

of the country dominates in terms of solar radiation,

[4]. Compared to other European countries, Albania

is listed among the countries with the highest

number of sunshine hours per year, presenting

adequate conditions for the development of solar

photovoltaic projects for power generation and solar

thermal for heating purposes. The installed solar

energy capacity, calculated as cumulative installed

solar capacity measured in gigawatts (GW), has

increased significantly after 2018, as is shown

below in Figure 2. These developments are also

affected by the global energy crisis that imposed

higher tariffs on electricity and a general increase in

the cost of energy sources, shifting the interest to

alternative sources of energy less dependent on

international markets, and more cost-effective.

Fig. 2: Installed solar energy capacity in Albania,

2001-2022.

Source: International Renewable Energy Agency

(IRENA), [4], [8].

During the year 2023, the Albanian government

applied a scheme to promote the use of solar panels

for heating water by family customers, which aims

to subsidize 70% of the cost from the Energy

Efficiency Agency. This measure aims to: reduce

electricity consumption and improve the supply of

hot sanitary water; as well as the reduction of CO2

emissions in the environment. Even though in the

last 5 years in Albania there has been a significant

increase in investments in solar energy, assessment

of availability and economic potential of the sector

is very limited in studies. In this context, it presents

obstacles in policy development by the

corresponding institutions in setting achievable

targets for the sector.

3 Literature Review

For many years, studies have addressed energy

contributions to a sustainable economy, stating that

shifting from traditional energy sources to solar

energy systems is crucial to obtain cumulative

effects on the environment. The advantages of using

green energy sources rely on cost-effective

technologies provided, and in building a more

climate-resilient energy system through

diversification of energy sources, [4]. The self-

consumption of energy through solar panels for the

household and residential sector is an important step

to reduce the electricity financial cost and

greenhouse gas emissions, [9], [10]. Solar energy

provides relevant benefits to the environment, but

the adoption of solar energy by the industrial,

commercial, and household sectors is highly

dependent on economic factors, [11], [12]. The

presence of challenges in solar energy generation

projects includes factors such as high initial

investment costs and moderate support by public

institutions, [13].

The measurement of economic profitability is

complex because it involves the study of intricate

networks of variables involving technical aspects,

accounting indicators, prediction of financial data,

and assumptions on financing decisions, [14]. The

study of decision-aiding tools to measure investment

profitability is significantly important, considering

uncertainty and it aims to provide evidence on

relevant factors that may affect the decision to use

solar energy. Different models are presented by

authors of the field, analyzing in both absolute and

relative terms the sources of value creation.

Methods used by different authors include the net

present value (NPV), the rate of return, and the

financial efficiency, focusing on overcoming the

limitations of the internal rate of return (IRR),

which is generally used in benefit-cost analysis,

[15].

According to IEA’s study of 2022 (International

Energy Agency), solar industry profitability in the

past decade is reported to be volatile, showing lower

average profit margins than the oil, coal, chemical,

and semiconductor industries, [16]. For the

European Union countries, a lack of specialization

in the solar industry across the supply chain is

evident, affecting the sector costs as well, [17].

However, several studies prove through sensitivity

analysis that solar systems with energy storage

result in being profitable for all household types,

[18], [19].

The methodological approach takes into account

the influence of the electricity cost and the discount

rate, applying separate analyses for the different

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

347

Volume 21, 2024

types of systems such as photovoltaic solar panels or

solar water heaters. A rising electricity price is

expected to positively affect the investment in a

photovoltaic solar system by making solar energy

sources more attractive, [20]. The rentability of

solar energy systems is affected by technological,

political, and geographical aspects, [21].

Different results might be found when taking

into consideration the study of the firm profitability

compared to family consumers of solar energy

systems, but especially when comparing

implementation in different locations affected by

specific weather conditions, subsidies policies, and

efficiency factors, [22]. Overall, the results of

several studies suggest the need for support

programs to facilitate the financing of renewable

energy sources, as important incentives that

influence investment decision-making. In this

context, cooperation between the institutional

stakeholders, financial institutions, and market

mechanisms is essential for the significant

development of the solar energy sector, [23].

4 Methodology

In this section, an analysis of the profitability of

solar panels as a source of energy for household

customers is carried out. To assess the profitability

of the investment, three assessment methods have

been used:

(i) net present value,

(ii) internal rate of return, and

(iii) payback period.

The net present value (NPV) is the difference

between the present value of cash inflows and

outflows. Cash inflows are the annual savings of

household consumers from the use of solar panels

compared to traditional energy, while cash outflow

is the initial investment necessary for the purchase

and use of solar panels. The investment will be

considered profitable if the net present value is

positive.

NPV is calculated:

Where:

CFt - the cash outflow or inflow of the investment

project during its duration

i – the discount rate

t – the duration of the solar panel investment

In our analysis, cash outflow refers to the initial

investment for purchasing and installing the solar

panels. This cost is calculated based on the number

of solar panels needed by a family based on data for

the average annual consumption in the last three

years in Albania and the market price of solar panels

sold in national markets. Data is retrieved from the

dataset of the Energy Regulator Authority for the

annual consumption of household tariff customers

for the period 2020 - 2022.

Cash inflows represent the future savings from

using solar panels instead of traditional electricity

sources. The average annual consumption for the

last three years in kwh is converted into monetary

value using the price per kWh of electricity

consumption in the Republic of Albania, which is

11.4 ALL per kwh (including VAT) for household

tariff customers, [24]. For the upcoming years, the

market price of electricity is indexed to the annual

inflation rate to determine the expected price of

electricity to be paid by household tariff customers.

The analysis is carried out for 30 years which is

the average expected lifespan of solar panels. The

discount rate used is the annual interest rate of the

loan with maturity equal to the average lifespan of

the solar panels (30 years).

The internal rate of return is the rate of return

realized by the investment, where the present value

of cash inflows is equal to the present value of cash

outflows. So, NPV = 0. According to this method,

the investment will be considered profitable if the

internal rate of return is higher than the interest rate

of the loan with a maturity of 30 years.

The analysis based on this method is derived

from the NPV.

The payback period shows the time it takes on

average for a household consumer to repay the

initial investment made for the purchase of solar

panels. According to this method, the investment

will be considered profitable if the initial investment

can be repaid before the maturity of the investment

in solar panels. Since this method does not consider

the time value of money, the discounted payback

period is calculated for a better analysis.

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

348

Volume 21, 2024

Year

Expected inflation

Average annual electricity consumption (ALL)

Base year 2023

29,902

2024

3.37%

30,910

2025

3.02%

31,843

2026

3.02%

32,805

2027

3.02%

33,796

2028

3.02%

34,816

2029

35,861

2030

36,936

2031

38,045

2032

39,186

2033

40,361

2034

41,572

2035

42,819

2036

44,104

2037

45,427

2038

46,790

2039

48,194

2040

49,640

2041

51,129

2042

52,663

2043

54,242

2044

55,870

2045

57,546

2046

59,272

2047

61,050

2048

62,882

2049

64,768

2050

66,711

2051

68,713

2052

70,774

2053

72,897

Year

Initial investment

Annual savings

Discounted savings

Cumulative NPV

2023

(427,480)

2024

30,910

29,160.1

(398,319.9)

2025

31,843

28,340.3

(369,979.6)

2026

32,805

27,543.6

(342,436.0)

2027

33,796

26,769.2

(315,666.8)

2028

34,816

26,016.7

(289,650.1)

2029

35,861

25,280.3

(264,369.8)

2030

36,936

24,564.9

(239,804.9)

2031

38,045

23,869.6

(215,935.3)

2032

39,186

23,194.1

(192,741.2)

2033

40,361

22,537.6

(170,203.6)

2034

41,572

21,899.8

(148,303.8)

2035

42,819

21,280.0

(127,023.8)

2036

44,104

20,677.7

(106,346.1)

2037

45,427

20,092.5

(86,253.6)

2038

46,790

19,523.8

(66,729.8)

2039

48,194

18,971.3

(47,758.5)

2040

49,640

18,434.4

(29,324.2)

2041

51,129

17,912.6

(11,411.5)

2042

52,663

17,405.7

5,994.1

2043

54,242

16,913.1

22,907.2

2044

55,870

16,434.4

39,341.6

2045

57,546

15,969.3

55,310.8

2046

59,272

15,517.3

70,828.1

2047

61,050

15,078.1

85,906.3

2048

62,882

14,651.4

100,557.6

2049

64,768

14,236.7

114,794.4

2050

66,711

13,833.8

128,628.2

2051

68,713

13,442.3

142,070.5

2052

70,774

13,061.8

155,132.3

2053

72,897

12,692.2

167,824.5

Value

(427,480)

595,304.5

NPV = 167,824.5 ALL

2020

2021

2022

Average

Total use by household customers

(Mwh)

2,956,703

3,081,617

3,074,801

Number of household customers

1,100,331

1,279,460

1,109,124

Average annual use by household

customers (Kwh)

2,687

2,409

2,772

2,623

5 Assessment of the Profitability of

Solar Panels

The following table (Table 1) provides data to

estimate the average annual use of electricity by

household consumers for the last three years.

Table 1. Electricity is used by household customers

Source: Energy Regulator Authority, Annual reports:

2020, 2021, 2022, [24], [25], [26].

Referring to these data, the average annual use

of electricity by a family during the last three years

is 2,623 kWh. Using the current price of electricity

for household customers, the average annual

expense of a family in our country is: 2,623

kwh/year * 11.4 ALL/kwh = 29,902 ALL/year.

Regarding the inflation in Albania, it is

expected to be 3.37% in 2024 and 3.02% for the

following years until 2028, [27]. For the period after

2028, the 3% targeted inflation rate set by the

Central Bank of Albania was used as the expected

inflation rate. Table 2 shows the average annual

electricity consumption by household customers

which is indexed with the expected inflation rate for

the next 30 years.

Regarding the energy produced by a solar panel,

it is known that a panel system with a power of 1

kWh produces an average of 750 - 850 kWh of

electricity in a year, [28]. To meet the average

demand of a family in our country, a total power

capacity of 3.08 - 3.5 kWh would be needed. The

average price of purchasing and installing solar

panels with a power of 1 kWh according to the

market value in Albania is currently 1,000 euros.

Consequently, to meet the annual electricity needs a

family should buy 4 solar panels with a power of 1

kWh and invest/spend 4,000 euros initially. The

assessment of the profitability of using solar panels

as an energy source is done using the average

interest rate for a 30-year maturity loan, which is

about 6%, [29].

Table 2. Average annual electricity expenditure

indexed with inflation, years 2023-2053

Source: Authors calculations

5.1 Calculation of NPV, IRR, and Payback

Period

The following table (Table 3) provides inputs for

calculating the profitability indicators of solar

panels.

Table 3. NPV of using 4 kWh solar panels.

Source: Authors calculations

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

349

Volume 21, 2024

For the calculation of the initial investment in

ALL (Albanian Lek), it was used the official

exchange rate of the euro published by the Bank of

Albania on the date of calculations (September 11,

2023).

The first method used is the net present value,

which is calculated as the difference between the

present value of inflows and outflows. After

discounting the cash flows at the rate of 6%, the

NPV of the investment in solar panels results

positive (167,824.5 ALL), which shows that such an

investment is profitable.

Another method for assessing the profitability

of an investment is the IRR (Internal Rate of

Return). Mathematically, IRR is the interest rate that

equals the present value of cash inflows with the

present value of cash outflows. The calculations

performed show that the internal rate of return is

8.86%, which is greater than the interest rate of the

loan with a maturity of 30 years. Consequently, this

method leads to the same conclusion as in the case

of the NPV method.

The payback period, although less frequently

used, is another method applied to determine

whether an investment is profitable or not. The

calculations show that the repayment period of this

investment is 11.73 years. Since this method does

not consider the time value of money, which is the

main disadvantage, the above table provides data for

the calculation of the discounted payback period.

Considering the latter, the investment in solar panels

has a payback period of 18.65 years, which means

that the investment is paid off during the period of

their use.

The results of the four methods are summarized

in Table 4 below:

Table 4. Summary of results

Method

Result

Investment decision

NPV

167,824.5 ALL

Profitable

IRR

8.86%

Profitable

Payback

11.73 years

Profitable

Discounted payback

18.65 years

Profitable

Source: Authors calculations

Based on the above cost–benefit analysis, we

can conclude that investing in solar panels is

profitable because the discounted benefits exceed

the investment cost.

6 Conclusion and Recommendation

Climate change mitigation, the increased cost of

traditional energy sources, and fluctuation in

electricity production by hydropower sources are

some of the factors that motivate a shift towards

alternative green energy sources. In this context,

Albania has undertaken significant steps in adapting

to solar energy production in the country, although

it has not reached its full potential.

This study analyses the financial profitability of

solar panels for household consumption in Albania,

providing quantitative evidence regarding the costs

and benefits of solar energy. The study results show

that solar energy investment for household energy

consumption in Albania is profitable. The

discounted cash flows take into consideration

forecasting based on the inflation rate, interest rate,

exchange rate, and electricity expenditures. The net

present value method assessment shows that

discounted benefits are higher than investment

costs, resulting in a positive NPV. According to the

internal rate of return analysis, IRR is equal to

8.86% exceeding the cost of financing the solar

panels. The payback method leads to the same

conclusion as in the case of the two other methods,

supporting the argument of profitability in solar

power usage with an investment repayment of 18.65

years. However, further steps should be taken to

fasten the incentives toward solar energy in Albania,

not only for the household sector but also for the

private sector and public institutions.

Some of the considerations should be in the

direction of aligning the national legislation and

secondary legislation supporting the solar power

sector framework. On the other hand, permitting

procedures should be simplified to facilitate

incentives for investment in solar energy. Another

aspect is supporting the private sector in accessing

financing, where public institutions can be an

important mechanism to ensure adequate policies,

and advise project documentation, contracting, and

consolidating procedures. The banking sector in

Albania is an important financial source to support

solar energy investments, especially in the case of

household consumers. This sector could design

specific financial products to support these

investments, incorporated under existing products

such as loans for housing, etc. Another important

factor that should be taken into consideration is the

human resources adequately skilled with

technological insight. Education institutions and

training centers should adapt their curricula in pace

with the new technology trends and market

dynamics to respond to the technological

advancement of the renewable energy sector.

Cooperation between the institutional stakeholders

is imperative to formulate strategies and awareness

campaigns to sensitize the public on the deployment

of green energies and their benefits.

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

350

Volume 21, 2024

6.1 Limitations of the Study

The study focuses on evaluating the profitability of

solar energy based on secondary data for the

household sector in Albania. Future studies should

address additional factors that contribute to the

topic, gathering primary data through

questionnaires. Other aspects to consider in future

studies include geographical differences, risk

indicators, technological factors, efficiency,

government subsidies, etc. Considerations for the

future should also be in studying the differences in

profitability of photovoltaic solar systems when

compared to solar water-heating systems.

References:

[1] PEET. (2021). The Political Economy of

Energy Transition in Southeast Europe:

Barriers and Obstacles. Report on Climate

Change, Energy and Environment.

[2] Ministry of Infrastructure and Energetics,

Republic of Albania. (2018). National

Strategy of Energy 2018-2030 (Strategjia

Kombëtare e Energjisë për Periudhën 2018-

2030), [Online]. https://www.kesh.al/wp-

content/uploads/2022/02/6-STRATEGJIA-

KOMBETARE-E-ENERGJISE-PER-

PERIUDHEN-2018-2030.pdf (Accessed

Date: September 5, 2023).

[3] Ministry of Environment, Republic of

Albania. (2016). Third National

Communication of the Republic of Albania

under the United Nations Framework

Convention on Climate Change, [Online].

https://unfccc.int/sites/default/files/resource/A

lbania%20NC3_13%20October%202016_0.p

df (Accessed Date: September 3, 2023).

[4] IRENA. (2021). Renewables Readiness

Assessment: Albania, International

Renewable Energy Agency, Abu Dhabi,

[Online]. https://www.irena.org/-

/media/Files/IRENA/Agency/Publication/202

1/March/IRENA_RRA_Albania_2021.pdf

(Accessed Date: September 3, 2023).

[5] EUROSTAT – database. 2023, [Online].

https://ec.europa.eu/eurostat/databrowser

(Accessed Date: September 5, 2023).

[6] Energy Community Secretariat. (2022).

Albania Annual Implementation Report,

[Online].

https://www.energy-

community.org/implementation/report.html

(Accessed Date: September 7, 2023).

[7] Climate Risk Profile: Albania. (2021). The

World Bank Group, [Online].

https://climateknowledgeportal.worldbank.org

/sites/default/files/2021-06/15812-

Albania%20Country%20Profile-WEB.pdf

(Accessed Date: September 9, 2023).

[8] IRENA Agency - Statistics Database. (2023) ,

[Online]. https://www.irena.org/Data/View-

data-by-topic/Capacity-and-

Generation/Statistics-Time-Series (Accessed

Date: September 7, 2023).

[9] Hesselink, L. X., and Chappin, E. J. (2019).

Adoption of energy efficient technologies by

households–Barriers, policies and agent-based

modelling studies. Renewable and Sustainable

Energy Reviews, vol.99, pp.29-41.

[10] Zhang, W., Stern, D., Liu, X., Cai, W., and

Wang, C. (2017). An analysis of the costs of

energy saving and CO2 mitigation in rural

households in China. Journal of Cleaner

Production, vol.165, pp.734–745.

[11] Cucchiella, F., D’Adamo, I., Gastaldi, M., and

Stornelli, V. (2018). Solar photovoltaic panels

combined with energy storage in a residential

building: An economic analysis.

Sustainability, vol.10(9).

[12] Dong, C., Sigrin, B., and Brinkman, G.

(2017). Forecasting residential solar

photovoltaic deployment in California.

Technological Forecasting and Social

Change, vol.117, pp.251-265.

[13] García-López, M., Montano, B. and

Melgarejo, J. (2023). Household energy

consumption and the financial feasibility of

self-consumption through photovoltaic panels

in Spain. Energy Efficiency, vol.16, 57.

[14] Baschieri, D., Magni, C. A. and Marchioni, A.

(2020). Comprehensive Financial Modeling of

Solar PV Systems. Published in: Proceedings

of the EU PVSEC 2020 - 37th European

Photovoltaic Solar Energy Conference and

Exhibition, pp.2024-2027.

[15] Magni, C.A. and Marchioni, A. (2019). The

accountingand-finance of a solar photovoltaic

plant: Economic efficiency of a replacement

project. 4th International Conference on

Energy and Environment, ICEE, Guimaraes,

Portugal.

[16] International Energy Agency (IEA). (2022).

Special Report on Solar PV Global Supply

Chains, [Online].

https://iea.blob.core.windows.net/assets/d2ee6

01d-6b1a-4cd2-a0e8-

db02dc64332c/SpecialReportonSolarPVGloba

lSupplyChains.pdf (Accessed Date:

September 7, 2023).

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

351

Volume 21, 2024

[17] SolarPower Europe. (2022). EU Solar Jobs

Report 2021, [Online].

https://api.solarpowereurope.org/uploads/SPE

_EU_Solar_Jobs_Report_September_2022_5

925da42fc.pdf?updated_at=2022-09-

20T14:05:03.808Z (Accessed Date:

September 8, 2023).

[18] Kijo-Kleczkowska, A., Bruś, P. and

Więciorkowski, G. (2022). Profitability

analysis of a photovoltaic installation - A case

study. Energy, Vol.261, Part B, 2022, 125310,

ISSN: 0360-5442.

[19] Kruzel R. and Helbrych P. (2018). Analysis of

the profitability of a photovoltaic installation

in the context of sustainable development of

construction. E3S Web of Conferences, 49.

[20] Johann, A. and Madlener, R. (2014).

Profitability of Energy Storage for Raising

Self-consumption of Solar Power: Analysis of

Different Household Types in Germany.

Energy Procedia. 61.

[21] Bertsch, V., Geldermann, J. and Lühn, T.

(2017) What drives the profitability of

household PV investments, self-consumption

and self-sufficiency? Applied Energy, 204, pp.

1-15.

[22] Herbut, P., Rzepczyński, M., and Angrecka,

S. (2018). The Analysis of Efficiency and

Investment Profitability of a Solar Water

Heating System in a Multi-Family Building.

Journal of Ecological Engineering. 2018,

vol.19(6), pp.75-80.

[23] Atchike, D. W., Zhenyu, Z., Ali, T.,

Weishang, G. and Jabeen, G. (2022). Towards

sustainable energy: Factors affecting solar

power system adoption by small and medium-

sized businesses. Frontiers in Environmental

Science, vol. 10, pp.186-197.

[24] Energy Regulatory Authority, Annual Report

2022 (Enti Rregullator i Energjisë, Raporti

Vjetor 2022). ERE official publication,

[Onlline].

https://www.ere.gov.al/images/files/2023/07/2

6/Annual_Report_2022.pdf (Accessed Date:

September 8, 2023).

[25] Energy Regulatory Authority, Annual Report

2020 (Enti Rregullator i Energjisë, Raporti

Vjetor 2020). ERE official publication,

[Onlline].

https://www.ere.gov.al/images/files/2021/08/2

3/Annual%20report%202020.pdf (Accessed

Date: September 8, 2023).

[26] Energy Regulatory Authority, Annual Report

2021 (Enti Rregullator i Energjisë, Raporti

Vjetor 2021). ERE official publication,

[Online].

https://www.ere.gov.al/images/files/2022/09/1

6/Annual%20report%202021.pdf (Accessed

Date: September 8, 2023).

[27] Albania: Inflation rate from 1998 to 2028,

Statista, [Online].

https://www.statista.com/statistics/444466/infl

ation-rate-in-albania/ (Accessed Date:

September 10, 2023).

[28] Allen, N., Corinne, T and Allen, S. (2023).

How much power does a solar panel produce?

Forbes, [Online].

https://www.forbes.com/home-

improvement/solar/how-much-power-does-a-

solar-panel-produce/ (Accessed Date:

September 10, 2023).

[29] Bank of Albania (2023). Nominal interest

rates and effective interest rates for

Individuals (Normat nominale dhe norma

efektive e interesit për Individë).

https://www.bankofalbania.org/Mbikeqyrja/Si

stemi_financiar_normat_e_interesit_dhe_kom

isionet/Normat_nominale_dhe_NEI_per_indiv

ide

(Accessed Date: September 11, 2023).

Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

- Mariola Kapidani has worked on the theoretical

background and literature review of the paper and

the overview of the sector developments.

- Eni Numani conducted the quantitative data

analysis and forecasting of the variables, by

developing the methodology of the study.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

This publication is made possible with the financial

support of AKKSHI. Its content is the responsibility

of the authors, the opinion expressed in the paper is

not necessarily the opinion of AKKSHI.

Conflict of Interest

The authors have no conflicts of interest to declare.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed.en

_US

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2024.21.30

Mariola Kapidani, Eni Numani

E-ISSN: 2224-2899

352

Volume 21, 2024