Economic Feasibility Study of Solar Power System (Photovoltaic) Connected to the Grid in Residential Use (Case Study: Residential Complex in District 2 of Tehran)

Mirghiasi, Seyede Fatemeh; Ghanbari, Milad

Economic Feasibility Study of Solar Power System (Photovoltaic) Connected to the Grid in Residential Use (Case Study: Residential Complex in District 2 of Tehran)

Authors

¹ Graduate of Project and Construction Management, South Tehran Branch, Islamic Azad University, Tehran, Iran

² Assistant Professor, Department of Civil Engineering, East Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

In most parts of the world, unlimited resources and renewable energy have been welcomed due to limited fossil fuels and the emphasis of regulations on reducing greenhouse gas emissions. Solar energy is more desirable because of its ease of access and conversion into electricity. The present issue is related to the costs and people and housing activists’ unwillingness to utilize renewable energy and the concern is that the country’s economy and the price of energy carriers do not create a comparative advantage for individuals. Therefore, the government must move towards encouraging policies and take the necessary measures. The purpose of this study is to estimate the operating costs of the solar power system for economic analysis and encourage investment. In the present descriptive-analytical study, the economic evaluation of grid-connected home photovoltaic system in a residential complex located in district 2 of Tehran, is investigated. Then, with the Life Cycle Assessment (LCA) approach, using engineering economics techniques and Excel software, the present net worth criterion, internal rate of return, return on investment period and the ratio of net present value to initial investment of various types of financing methods are calculated. With the studies performed, all the economic criteria for the implementation of the photovoltaic system can be justified by analyzing the financing scenarios. On the other hand, granting subsidies, low-interest loans can encourage investors to enter the field of renewable energy, so that according to the benefits of the system, their economic justification can be feasible

Highlights