Feasibility of Solar Power Generating from a Techno-Economic Side Towards the Implementation of Green Manufacturing

Abstract

Objective: Solar Power Plants (SPP) operated by companies or organizations are expected to positively impact the company's performance. It can support the commitment to implementing environmentally friendly manufacturing practices to sustain the environment for living beings. Theoretical Framework: This study aims to analyze the techno-economic feasibility of implementing the photovoltaic (PV) system so the results can serve as a reference for companies planning to operate PV systems. Method: The ARIMA and degradation rate analysis methods measure the feasibility of a 188.46 kW installed PV system over its 1–30-year lifecycle. This includes measuring the estimated electricity produced, Return on Investment (ROI), Payback Period (PBP), and the reduction in Carbon Emissions based on the electricity production of the PV system. Results and Discussion: The techno-economic analysis estimated an electricity output of 5,117,149 kWh over 30 years, with an ROI of 80.6%, equivalent to Rp 132,233,883 million per year, a PBP of 15 years, and a carbon emission reduction of 152 tCO2eq per year. The study concludes that investing in a self-operated PV system can meet 19% of the company's total electricity consumption, reducing reliance on fossil fuel-based electricity sources. Additionally, the company can manage costs of approximately Rp 14,429,005 per month from operational electricity consumption. Research Implications: The implications of this research, providing additional insights for the development of new renewable energy. Value: PV systems can positively impact the environment by significantly reducing carbon emissions, accounting for around 19% of monthly electricity consumption.