A Comprehensive Carbon Credit Integrated Techno-Economic and Investment Framework for Grid-Connected Solar Photovoltaic System

We introduce a carbon-credit-enabled technoeconomic and investment decision framework for grid-connected solar PV systems with battery storage. Optimal sizing decisions, hourly dispatch profiles, replacement timelines and interactions with green-finance products and policy incentives are coupled with comprehensive project financing and environmental performance analysis via the proposed framework. Annualized capital expenditure and operating cash-flows include green bond paydown, concessional debt and capital grant components, production incentive payments, feed-in contracts, avoided-energy bills and cash generation through carbon credits. Renewablepenetration scenarios between 10% and 50% are evaluated using the framework, providing monetized energy and emissions results. Key performance indicators are lowered by at least 40% (energy payback lifetime net present cost) and 50% (levelized cost of energy) through policy plus carbon-credit revenue stacking while internal rate of return is increased, return on equity is amplified and discounted-project payback periods are decreased. Uncertainty in PV capital expenditures and carbonprice estimates are identified via Monte Carlo and variancebased Sobol analysis as major contributors to project financing uncertainty. The proposed framework can act as a decisionsupport basis for large energy consumers to show how sustainable financing mechanisms, incentive designs and carbon markets can drastically improve solar-plus-storage project investment and emissions reductions profiles.