Search

Distributed photovoltaics (PV) play a key role in the energy transition. We construct an investment value and timing assessment model based on the real options method to improve scientific decision-making in distributed PV investing in an uncertain environment. The model is applied to analyze projects in the East China Power Grid region under multiple self-consumption ratio scenarios. The results show that investing in distributed PV projects is beneficial, but there are differences in the optimal investment timing under different self-consumption ratios. Investors can defer investment for as early as one year to obtain optimal investment value. • Propose the distributed PV investment decision model based on the real option method. • Consider the uncertainty of initial investment cost and the on-grid price. • Investigate the impact of distributed PV power generation self-consumption ratio. • Investigate the impact of carbon trading on investment value and investment timing. [ABSTRACT FROM AUTHOR]