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Techno‑Economic Analysis of Off-Grid and Grid-Connected Solar PV Systems for an University Building

Corresponding Author : Muhammad Mahamood Hasan (muhammad.hasan-ipe@sust.edu)

Keywords : Renewable Energy, Solar Energy, PV System, Economic Feasibility, Net Present Value

Abstract :

To meet daily energy demands, the world depletes all natural resources, especially fossil fuels, resulting in rapid depletion of natural fuel reserves and irreversible environmental damage. In today's world, there is an urgent need to replace fossil fuel-derived energy with renewable energy. Solar energy, as an inexhaustible and abundant renewable energy source, is gaining popularity worldwide, including in Bangladesh, due to its geographical location and climate. The current research project aims to design photovoltaic (PV) energy systems, including grid-connected and off-grid systems, and estimate their viability for an academic building at a regional university. The solar PV system was designed with the help of software called PVsyst V 6.77, and the financial analysis was done with RETScreen-4 and Microsoft Excel. The study has found that both the off-grid and grid-connected systems are profitable and feasible to implement as a replacement for grid energy. However, the high initial investment is the only drawback. The grid-connected PV system without batteries is found to be the most cost-effective option when considering the internal rate of return (IRR) of 32.90%, the net present value (NPV) of ~16,548,800 BDT, annual life cycle savings ~1,706,400 BDT, and the emission savings of about 93.9 tons CO2 eq.

Published on July 1st, 2023 in Volume 33, issue 1, Applied Sciences and Technology