An analysis of the implementation of a hybrid renewable-energy system in a building by considering the reduction in electricity price subsidies and the reliability of the grid

Abstract This article discusses the implementation of a hybrid renewable-energy system to satisfy the electricity requirements of a building. The analysis is based on optimization calculations performed using HOMER software. The components of the simulated hybrid renewable-energy system include photovoltaics, generators powered by biogas, converters and a grid. The input data utilized by the HOMER software are derived from measurements and surveys. The electric load curve is obtained through measurements at the location of the case study. Through surveys, parameters pertaining to the components of the hybrid renewable-energy system were gathered. The analysis was carried out using two sensitivity variables, namely electricity price and grid reliability. On the basis of these two sensitivity variables, optimal system configuration, net present cost, energy cost, return on investment, internal rate of return and payback period were analysed. The results of the analysis indicated that reducing subsidies, which results in higher electricity prices, provided opportunities for economically competitive hybrid renewable-energy systems. With electricity prices of US$0.094/kWh, the return of investment and the internal rate of return increased to 15% and 19%, respectively, and the payback period decreased to 5.3 years. When a hybrid renewable-energy system is implemented in regions with low grid reliability, the same phenomenon occurs.