Economic and environment analysis of a grid connected solar PV system in Malaysia

Abstract

Grid-connected Photovoltaic (GCPV) system can play a vital role in lowering electricity demand, shifting peak load and mitigating the greenhouse-gas effect. This study investigates the potential implementation and the economic analysis of a GCPV system for a residential house located in Johor Bahru, the southern city of Malaysia. Hybrid Optimization Model for Electric Renewable (HOMER) simulation software was used to determine the technical feasibility of the system and to perform the economic analysis of the system. The impact of the PV system on the environment is also discussed. The PV module was modelled based on the parameters obtained from PV module manufacturer's data sheet to supply 4 kW total demand of a typical house. The economic simulations for the studied GC system are focused on the net present costs, cost of energy, excess electricity produced and the reduction of CO2 emissions. As a result, a critical study on a grid-connected PV system economically and environmentally is obtained. Results show that solar energy is one of the best renewable energy sources with the least negative impacts on the environment. However, the reliance on conventional energy resources will continue as long as the cost of fuel is reasonable.