Photovoltaic project investment based on the real options method: An analysis of the East China power grid region

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.