A Cost Model for PV Based Renewable Energy Projects

Abstract

The energy from renewable sources had always been perceived as free or at least lower-cost energy, with its sourcing from natural sources such as solar radiation and wind energy. In actual the cost breakdown of renewable energy would exceed that of traditional energy sources in almost all cases. This study attempts to produce a cost model for renewable energy systems. The model takes into account different requirements and site variations into account. In this paper, elements of the cost model Renewable Energy System (RES) especially, photo-voltaic solar systems, have been investigated. Cost items are presented alongside a to-do checklist for the new Photo-Voltaic (PV) solar energy system. The goal of this study is to construct a model that would cover the cost sources as well as bring to attention the unexpected sources of cost variations that include all possible cost items of a new solar renewable energy system. The feasibility of the new system is expressed in terms of Total Cost (T.C) and Cost of Energy (COE). The model can evaluate the feasibility of off-grid as well as on-grid systems. The model investigated properly as well as an empirical analysis and verified through results comparison with reviewed case studies. The results revealed that the cost of off-grid systems is higher than the cost of on-grid systems due to the cost of batteries as well as the cost of standby generators. So, it would be more feasible to use an off-grid system only in remote or isolated areas. Risk Cost lists, ranking and success factors of new renewable projects are exhibited.