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The translation has been funded by Facultad de Administracion y Direccion de Empresas (Universitat Politecnica de Valencia).

Impact on the Sustainable Development Goals (SDGs)

Analysis of institutional authors

Guaita-Pradas, ICorresponding AuthorBlasco-Ruiz, AAuthor

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October 30, 2024
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Analyzing Profitability and Discount Rates for Solar PV Plants. A Spanish Case

Publicated to:Sustainability. 12 (8): 3157- - 2020-04-01 12(8), DOI: 10.3390/su12083157

Authors: Guaita-Pradas, Inmaculada; Blasco-Ruiz, Ana

Affiliations

Univ Politecn Valencia, Dept Econ & Social Sci - Author

Abstract

The widespread use of renewable energy sources and the growing concern about climate change, together with Spain's exceptional weather and solar radiation conditions, have led to an increase in the use of photovoltaics for energy production in the country. Solar power generation has been tightly regulated, although the legal framework has changed frequently over the years. When assessing the potential financial performance of any business venture, legal as well as financial aspects must be considered, but a critical factor is the discount rate used, which must reflect the company's capital cost. Other factors are the period of interest, the firm's activity, market risk, and the level of debt of firms in the sector. The main objective of this study is thus to estimate the discount rate for companies using photovoltaics to produce solar power. We calculate it by employing two financial techniques: capital asset pricing model and historical return analysis. We then evaluate the investment in a photovoltaic plant with a capacity of 5000 kW located in eastern Spain, assuming it started its activity in different years which coincide with changes in the regulatory framework. The results show the relevance of the initial outlay costs for the profitability of photovoltaic power plants.

Keywords

Alternative energyCapital asset pricing modelCost of capitalCost of equityDiscount rateLegislationMarket systemNet present valuePeace, justice and strong institutionsPhotovoltaic systemPower generationPower plantProfitabilitySector's historical returnSolar powerSolar radiationSpain

Quality index

Bibliometric impact. Analysis of the contribution and dissemination channel

The work has been published in the journal Sustainability due to its progression and the good impact it has achieved in recent years, according to the agency Scopus (SJR), it has become a reference in its field. In the year of publication of the work, 2020, it was in position , thus managing to position itself as a Q1 (Primer Cuartil), in the category Energy Engineering and Power Technology. Notably, the journal is positioned above the 90th percentile.

From a relative perspective, and based on the normalized impact indicator calculated from the Field Citation Ratio (FCR) of the Dimensions source, it yields a value of: 11.35, which indicates that, compared to works in the same discipline and in the same year of publication, it ranks as a work cited above average. (source consulted: Dimensions Jul 2025)

Specifically, and according to different indexing agencies, this work has accumulated citations as of 2025-07-16, the following number of citations:

  • WoS: 22
  • Scopus: 20

Impact and social visibility

From the perspective of influence or social adoption, and based on metrics associated with mentions and interactions provided by agencies specializing in calculating the so-called "Alternative or Social Metrics," we can highlight as of 2025-07-16:

  • The use of this contribution in bookmarks, code forks, additions to favorite lists for recurrent reading, as well as general views, indicates that someone is using the publication as a basis for their current work. This may be a notable indicator of future more formal and academic citations. This claim is supported by the result of the "Capture" indicator, which yields a total of: 109 (PlumX).

It is essential to present evidence supporting full alignment with institutional principles and guidelines on Open Science and the Conservation and Dissemination of Intellectual Heritage. A clear example of this is:

  • The work has been submitted to a journal whose editorial policy allows open Open Access publication.
  • Assignment of a Handle/URN as an identifier within the deposit in the Institutional Repository: http://hdl.handle.net/10251/166648
Continuing with the social impact of the work, it is important to emphasize that, due to its content, it can be assigned to the area of interest of ODS 16 - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels, with a probability of 0% according to the mBERT algorithm developed by Aurora University.

Leadership analysis of institutional authors

There is a significant leadership presence as some of the institution’s authors appear as the first or last signer, detailed as follows: First Author (Guaita Pradas, Inmaculada) and Last Author (Blasco Ruíz, Ana).

the author responsible for correspondence tasks has been Guaita Pradas, Inmaculada.