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Research Paper | Finance | China | Volume 6 Issue 7, July 2017 | Rating: 6.8 / 10

Investment Analysis of Photovoltaic Roof Project Based on Real Option

Pengbo Yang ^[19] | Xinyue Ma ^[3] | Hao Luo ^[3]

Abstract: In the context of the increasingly sharp national energy security problems and the lack of fossil energy, distributed photovoltaic power generation is of great significance to promote the transformation of China's energy structure. This paper firstly analyzes the commercial model?the cost and benefit of distributed photovoltaic power generation, then puts forward the crowd-funding method of financing the PV project to overcome the difficulties of photovoltaic power generation project financing. Finally, the real option theory is applied to the investment evaluation, and the quantitative analysis is carried out by using the Black-Scholes pricing formula. It is pointed out that the real option theory can better evaluate the investment value of the project.

Keywords: Distributed roof photovoltaicReal optionCrowd-fundinginvestment benefit

Edition: Volume 6 Issue 7, July 2017,

Pages: 32 - 38