Investment in Renewable Energy Sources: Economic Profitability Factors in Croatia

Vlasta Roška – Libertas International University, Trg J. F. Kennedy 6b, 10 000 Zagreb, Croatia

Zvonko Merkaš – Libertas International University, Trg J. F. Kennedy 6b, 10 000 Zagreb, Croatia

Bartol Pavlović – Libertas International University, Trg J. F. Kennedy 6b, 10 000 Zagreb, Croatia

Abstract: Green projects have become essential in contemporary econom­ic conditions due to an increasing emphasis on environmental preserva­tion and sustainable development. including investing in renewable ener­gy sources. The main aim of this study is to explore the factors influencing the economic viability of investing in photovoltaic systems, including initial investments, return on investment, access to financing, infrastructure avail­ability, maintenance costs, system reliability, price competitiveness of out­put, and the legislative framework in Croatia. The study addresses the ex­tent to which some of these factors influence the decision to invest in re­newable energy sources using photovoltaic systems. The research was con­ducted on 103 respondents who are users of photovoltaic systems. The first hypothesis, that the decision to invest in renewable energy sources by in­vesting in photovoltaic power plants is influenced not only by subsidies but also by investment returns, increased property value, increased energy in­dependence, and long-term protection against rising electricity prices is ac­cepted. The second hypothesis was not confirmed because legislative and other constraints do not affect investment decisions alongside an excellent financial investment structure.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-84-4, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.S.P.2024

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