Economic evaluation of solar photovoltaic system in comparison with diesel generator system

This study aims to estimate the costs of energy generation using solar systems relative to diesel generator (DG) systems through an economic analysis and encourage investments in solar energy. The economic analysis of solar and DG systems was carried out using the net present value (NPV) at discount rates of ۱۰%, ۲۰%, and ۳۰%. It was found that the solar system was more cost-efficient than the DG system due to lower maintenance costs and zero fuel cost, despite a higher investment cost. Also, based on the economic analysis, it is concluded that the cost of electricity production through the solar system is almost equal to ۰.۰۰۸ $/kWh and this value is ۰.۰۱ $/kWh for the DG. The use of clean solar power may not only provide economic advantages but also reduce fossil fuel consumption and GHG emissions, preserving natural resources for future generations and contributing to sustainable development.

Keywords:

Photovoltaic , Economic , NPV , Solar , Diesel generator