Uncertainty propagation in financial models of photovoltaic systems

Financial analysis has a long history of capturing the stochasticity of real-world phenomena. For informed investment decisions, it is crucial to understand and quantify uncertainty propagation from financial model input to output. Yet to that end, in the photovoltaics sector one has so far relied on coarse-grained approximations or extensive simulations. Here we present a numerically inexpensive approach that exactly traces uncertainty propagation on the level of probability distributions. It leverages analytic shortcuts through switching between different distribution representations, and only assumes independent input variables. With the financial analysis of a typical photovoltaic system as a case study, we use this approach to compute key financial metrics and demonstrate that their values can differ significantly from those obtained by a standard approximation. Moreover, we show with both frameworks that input uncertainty alone can significantly impact the outcome of financial analysis.

Authors

Institutions

Publication Details

Journal
Scientific Reports
Published
2026-02-04
DOI
https://doi.org/10.1038/s41598-026-38053-1
Primary Topic
Capital Investment and Risk Analysis
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Uncertainty propagation in financial models of photovoltaic systems

Stefan Wieland, Utku Gürsal
Scientific Reports
Capital Investment and Risk Analysis
article

Uncertainty propagation in financial models of photovoltaic systems

Stefan Wieland, Utku Gürsal
article en

Abstract

Financial analysis has a long history of capturing the stochasticity of real-world phenomena. For informed investment decisions, it is crucial to understand and quantify uncertainty propagation from financial model input to output. Yet to that end, in the photovoltaics sector one has so far relied on coarse-grained approximations or extensive simulations. Here we present a numerically inexpensive approach that exactly traces uncertainty propagation on the level of probability distributions. It leverages analytic shortcuts through switching between different distribution representations, and only assumes independent input variables. With the financial analysis of a typical photovoltaic system as a case study, we use this approach to compute key financial metrics and demonstrate that their values can differ significantly from those obtained by a standard approximation. Moreover, we show with both frameworks that input uncertainty alone can significantly impact the outcome of financial analysis.

Scientific ReportsVol. 16(1)
Fraunhofer Institute for Solar Energy Systems (DE)
Openalex Percentile: Top 70%
Capital Investment and Risk Analysis
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.