Energy assessment and economic sensitivity analysis of a grid-connected photovoltaic system

Cui, Yuanlong; Zhu, Jie; Meng, Fanran; Zoras, Stamatis; McKechnie, Jon; Chu, Junze

Abstract

This paper presents techno-economic assessment results of a grid-connected photovoltaic (PV) system for domestic building application. The PV system electricity output, energy conversion efficiency and cell temperature are explored based on the local weather condition, the system life cycle cost is evaluated with full account of the life of assets, volatile economic fluctuations, uncertainty influence factors, net present value (NPV) and discounted payback period (DPP) under Feed-in Tariff (FiT) scheme, the annual savings and payback time are compared for the FiT and new Smart Export Guarantee (SEG) schemes. Technical analysis results indicate that the system is capable of fulfilling the building electrical energy demand from April to October, and the extra electricity of 1530.23 kWh is exported to the grid in this period. The life cycle cost assessment results illustrate that the system achieves a NPV of £1335.32 and has a DPP of 9.34 years under the FiT scheme. Moreover, the sensitive analyses reveal that the high discount rate decreases the system NPV whereas the high initial cost leads to long payback period to realize the positive NPV. Furthermore, the FiT is the most cost-effective solution for PV system and has the shortest DPP compared with the SEG.

Citation

Cui, Y., Zhu, J., Meng, F., Zoras, S., McKechnie, J., & Chu, J. (2020). Energy assessment and economic sensitivity analysis of a grid-connected photovoltaic system. Renewable Energy, 150, 101-115. https://doi.org/10.1016/j.renene.2019.12.127

• Journal Article Type: Article
• Acceptance Date: Dec 27, 2019
• Online Publication Date: Dec 30, 2019
• Publication Date: 2020-05
• Deposit Date: Jan 8, 2020
• Publicly Available Date: Dec 31, 2020
• Journal: Renewable Energy
• Print ISSN: 0960-1481
• Electronic ISSN: 1879-0682
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 150
• Pages: 101-115
• DOI: https://doi.org/10.1016/j.renene.2019.12.127
• Keywords: Renewable Energy, Sustainability and the Environment
• Public URL: https://nottingham-repository.worktribe.com/output/3663751
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0960148119319998