Grid Connected Rooftop PV Plant Economic Analysis Using Present Time Frame Methodology

Abstract

The rooftop PV installation is one of the most significant solutions for producing electrical energy without creating any pollution. PV plants need a significant initial investment, and they also provide energy assistance to grid and users. There is an urgent need to create a straightforward and error-free economic analysis methodology to attract consumers from commercial buildings (such as institutional buildings). The presented study covers a time-value of money based economic analysis for a 100 kWp PV plant at a composite climate in Gwalior, India. The study is performed through real-time data collection and analysis. The results show that there is 127020 kWh electricity generation in the first year, which declined to 104828.34 kWh in the last year (of PV plant life) due to the degradation of the PV array. By considering the uniform cash flow and discount rate of 8.6%, the average annual benefit is Rs. 904374.88. The simple and discounted paybacks of the case study are 7 and 12 years, respectively, whereas the net present value and benefit-to-cost ratio of the plant are Rs. 4679070 and 2.04, respectively.