Techno-economic feasibility study of a solar photovoltaic system with battery backup for commercial applications

Abstract

This research study explores the techno-economic feasibility of implementing a solar photovoltaic (PV) system with battery backup for commercial use in Cape Town, South Africa. Addressing the energy challenges, particularly load-shedding, it determines system performance and cost effectiveness. The primary research question revolves around identifying the optimal configuration of a solar PV system with battery backup, considering energy consumption patterns, and other site-specific factors like climatology data. Literature gaps in adequately addressing the techno-economic assessment of solar PV systems with battery storage for commercial use in South Africa exist. A literature review of the system components, effects of factors affecting technical performance as well as similar previous studies was conducted. The employed approach involves using simulation tools like PVSyst to determine the system’s output and configuration and conducting a techno-economic analysis to determine its viability. The methodology involves using monthly electricity consumption data from a commercial site in Cape Town and utilising PVSyst to estimate energy yields, performance ratios, and system losses. The technical analysis formed the basis of system sizing and configuration, with a bill of quantities compiled to estimate system capital costs. The designed system, with an 82.2% performance ratio, includes two 50 kVA hybrid inverters, a 102 kWp solar panel array and 80 kWh energy storage. Economic analysis, using customised Excel worksheets, evaluated the project’s net present value (NPV) of R45 358 870.35, internal rate of return (IRR) of 27.55% and a discounted payback period (DPP) of 3.4 years. Ethical considerations ensure transparency and integrity. Anticipated outcomes include insights into solar PV system yields, performance ratios, and economic viability, aiding decision-making for stakeholders and promoting renewable energy adoption. The findings aim to inform the adoption of renewable energy solutions in South Africa, contributing to the sustainable energy transition.