Question 1:

A grid tied solar PV system is rated at 5 kWp and remains operational for 20 years of use.

a) Find out the levelized cost of electricity produced by this system installed in the two cities if the
entire cost of the system, including maintenance/replacements for 20 years, is 1 million rupees.
Lahore, EPSH = 5 hours per day.
Quetta, EPSH = 7 hours per day.

For both cities, consider identical losses which are: temperature losses at 10% on average, the Power
electronic losses (MPPT and inversion losses) at 10% on average and all other losses could be lumped
together to 10% on average. ASSUME THAT THE GRID IS AVAILABLE AT ALL TIMES (NO LOAD-SHEDDING)

b) Alternatively, a user can get the electricity from utility grid (WAPDA) and the price of electricity
from the grid is 15 Rs per kWh (this is the price of each unit that you buy from the grid).
Calculate the payback period (from a consumer/investor perspective) for the solar PV system
installed in Lahore and Quetta. ASSUME THAT THE GRID IS AVAILABLE AT ALL TIMES (NO LOAD-
SHEDDING)

Answer 1:

Lahore:

a)

Quetta:
 Note:
So you can see that the LCOE for two regions is significantly different! As the fuel (sunlight)
is different. This would not have typically been the case for fossil fuel based generation!

b) Energy produced per year for Lahore = 6652 kWh

Energy produced per year for Quetta = kWh

Total gains per year for Lahore = 6652 x 15 = 99,780 rupees/year

Total gains per year for Quetta = x 15 = 139,695 rupees/year

Note: So an investment (on the same system) may make sense in Quetta and not in Lahore
depending on what your investment concerns are.
Purely from an investors perspective, you will have to make a choice that pay back in 10/7.1
is acceptable for you on not!