The feasibility and benefits of installing grid-connected PV Systems in the Kingdom of Bahrain

Abstract

In this study, an economic model was developed to evaluate the feasibility of installing small-scale, grid-connected PV systems. Net present value and internal rate of return methods were used for model evaluation with the guide of a simple payback period calculation. The study identified the range of the PV system's market price that renders the system feasible to install. The results were related to the subsidized as well as the unsubsidized electricity tariffs. The study also highlighted the importance of providing governmental financial support to promote renewable energy in the Kingdom of Bahrain. To capitalize on the PV installation benefits, its impact on the stakeholders - beyond the household - was also investigated. Advantages such as reducing natural gas consumption and related emissions, potential benefits to the Electricity and Water Authority, creating a new line of jobs in the local market, and raising awareness were discussed.