Assesment of rooftop solar netmetering concept : consumer and utilty point of view

Abstract

Global energy needs continue to grow, whilst fossil fuels still outstrip renewable energy in terms of supportive policies and subsidies. With growing concern towards climate change, many countries across the world are rethinking their energy strategy and incorporation alternative methods of energy generation. Of all the different modes of renewable energy technologies, Solar PV technology has caught the most attention. With environmental concerns and energy needs increasing, the world is promoting renewable energy technologies. Today, the PV systems price is decreasing, which gives it a competitive edge. The aim of this study is to research the viability of rooftop solar PV systems under certain circumstances. The study performs a cost beneficial analysis for the lifetime of the solar PV system making use of economic analysis on residential consumer perspectives and avoided cost analysis on utility point of view. The research concluded with several findings. Basically it concluded that the investment on Roof Top Solar is worthwhile when monthly consumption exceed 200 kWhs. Therefore, according to the present tariff structure and cost of solar PV Systems, Net Metering is not economical for monthly average consumption below 150 units. In utility point of view, it has been found that the reduction of avoided cost is rapidly increasing. But the rate at which the reduction of avoid cost increasing is decreasing and it becomes constant after 20 years. rooftop solar electricity generation cannot replace any marginal plant during the period of study concerned. There is no detailed study has been conducted in Sri Lanka in this particular area of study. The outcome of the research provides important and useful information for consumers, electricity utilities as well as the policy makers in energy sector.