Epsilon Archive for Student Projects

Abstract

When the costs for a company increase it is normal to look for alternatives to lower these
costs. One of the expenditure that farmers have is energy costs. The price for the energy may
vary because of the free market. To look at the possibilities for a farmer to invest in sun
power, to make the company less sensitive for the changes on the electrical market, is
interesting. The biggest part of the electricity that is produced in Sweden comes from a few
companies on the market. Two types of produced electricity dominate the market. These are
electricity made from nuclear power and electricity made from hydroelectrically power.
Renewable sources that do not affect the environment are today a minority of all the produced
electricity.

The paper aims to look at the possibilities for a farmer to make an investment in sun power, to
fill the company’s need of electricity. Some of the political mean of control are also being
analyzed to investigate the outcome of an investment. The paper aims to increase the
knowledge about the condition for an investment in sun power and whether it would be
profitable.

The conclusion of the paper is that it is profitable for the farmer to make an investment in sun
power, provided that the right circumstances exist. One condition that has a big influence on
the investment is that the subsidy is granted for the sun power project. In the summer of 2009
the parliament of Sweden approved the subsidy, to support the investments for sun power in
Sweden. The motive for the subsidy is to stimulate the sun power market. The weather
condition is another factor that affects the profit for the investment. Since the climate in
Sweden varies from the south to the north part, the geographical location influences the
outcome of the investment, but this is not calculated in the paper. A list is presented in the end
of the work, that can be helpful when to start investigate the possibilities for an investment in
sun power.