| dc.description.abstract | Renewable energy technologies (RETs) have seen considerable progress in cost reductions due to learning and economies of scale. Despite this, a wide range of investment costs for renewable energy projects is observed. The aim of this thesis is to identify the causes for disparities in investment costs based on the costs investors indicate to need for their RETs investment. To identify the causes for disparities, the thesis focuses on photovoltaic solar projects in the Netherlands for which subsidy (SDE+) was requested. Interviews were conducted with SDE+ applicants and intermediaries that are hired by SDE+ applicants to assist with the application. The results indicate that the most important cost-increasing factors are the grid connection, differences between buildings, and the PV technology considered for the cost estimation. The most influential cost-decreasing factors are the do-it-yourself approach, the search for cheaper options, and experience from previous projects. Other factors, such as the cost components that are included in the cost estimation, the orientation of the panels, the PV mounting system, willingness to pay, and roofs with shadows have a small impact on the disparity in investment costs. Differences between investors and intermediaries were found as well. According to the investors, the reported investment costs reflect their actual costs, while intermediaries stated the contrary. Additionally, investors made project-specific cost estimations, while some intermediaries stated to use a standard cost estimation for different projects. If and how much this differs in case specific cost estimations would be given is not analyzed in this research. Consequently, the impact of the difference in used methods for the cost estimation, the role of the intermediary and the reliability of the self-reported costs on the disparities remain uncertain. Given these findings, it is recommended to reduce information search costs for investors and to draw more information from investors regarding the total cost. As the impact of certain factors remain unexplained, it is argued that the use of the investment costs reported by the investors might need careful interpretation when used for determining SDE+ base rates. | |
