Economic evaluation of solar PV electricity prosumption in Ghana

Abstract

Residential and commercial facility users are looking for ways to reduce their energy bills; this has resulted in nano and micro solar energy production in the form of electricity prosumption in contemporary times. Several technical factors characterise rooftop solar projects informing the decision to go solar. Amongst these factors are the solar energy available from the PV system, self-consumption ratio and overall system efficiency. However, from the investor's viewpoint, the most critical factor is the economic viability of the proposed project. Since energy economics is vital to investors, the paper seeks to analyse the economics (financial feasibility and profitability) associated with different types of prosumers in Ghana's residential and commercial classes. The net present value, internal rate of return, profitability index, and discounted payback were the economic indicators used to appraise Ghana's financial feasibility and profitability of electricity prosumption. The study shows that electricity prosumption in Ghana is worth investing in. The best investment option in the residential and commercial classes is the prosumers with grid integration and without storage (type 2). In the residential tariff class, the best investment option is the prosumers, whose energy demands are between 301 kWh and 600 kWh.