Review article

https://doi.org/10.17559/TV-20240311001391

Application of Multicriteria Decision Analysis Approach Managing Solar Prosumer Choices: Implications for Households, Regulatory Authorities, and Contractors

Andrius Tamošiūnas orcid.org/0000-0003-1521-0572 ; Vilnius Gediminas Technical University, the Faculty of Business Management, the Department of Management, Saulėtekio al. 11, LT-10223 Vilnius *

* Corresponding author.

Abstract

The research finds a rapidly growing solar energy industry with increasing dynamics, complexity, and heterogeneity of contingency variables affecting the rationale for solar investment decision-making. With a primary focus on the segment of individual households, the spectrum of possible solutions was evolving vastly. Consequently, the asymmetry of data access increases the risk exposure of the investment management decisions. In this context, applying a multicriteria decision analysis approach, the paper aims to support the decision-making process for individual households when evaluating and selecting solar PV installations. In this regard, the study found various techniques used by scholars, each with its applications and resulting differences. As a result, the interactive approach was chosen for qualitative judgements (using either qualitative or quantitative data) about differences in the utility of possible solar investment solutions to the individual household. The latter quantifies the relative attractiveness of solar PV installation offerings and contributes to the solar investment rationale. During the empirical investigation of Lithuanian households, 19 offerings, representing 83% of the market, were examined in three distinct scenarios. The study's results indicate that the offerings with the highest efficiency rates may not necessarily align with the optimal choices. Accordingly, the findings demonstrate the utility of the chosen approach extending beyond the solar prosumer's operational and tactical management tasks when assessing & selecting, deciding, commencing, and implementing the solution. It also reveals the impacts of changing metering schemes and fiscal and monetary regulations on investment performance and their effects on decision-making. Concerning regulatory authorities as if to improve support mechanisms for solar prosumers, the research revealed the potential to streamline the use of public funds. Respectively, for private organisations related to the solar industry, findings imply opportunities to improve supply chain operations and the timing of the execution of the contracts in connection to the content of the offerings.

Keywords

categorical based evaluation; economic utility; management; metering scheme; multiple criteria decisions; renewable energy

Hrčak ID:

320418

URI

https://hrcak.srce.hr/320418

Publication date:

31.8.2024.

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