Professional Documents
Culture Documents
BY
Sanad Maharjan
14030936
PU registration no:2013-2-03-0111
At the
Apex College
Pokhara University
Kathmandu
December/2016
DECLERATION
I hereby declare that the project work report entitled “Cost Benefit Of Solar PV.”
Submitted as summer project in the BBA is my original work and the Project Work Report has
not formed the basis for the award of any degree, diploma, or other similar titles.
Signature
Sanad Maharjan
Date
i
CERTIFICATE
This is to certify that the Project Work titled “Cost Benefit Of Solar PV.” That has been devotedly
done and submitted by Sanad Maharjan (41030936) for the partial fulfillment of the requirements of
BBA embodies the work done by him is under my supervision.
______________________
Name
Date
In-Charge of Research or PW
Date
ii
ACKNOWLEDGEMENTS
This report has been prepared for the partial fulfillment of the requirements for the degree of
Bachelor of Business Administration (BBA). This report would have not been completed
without precious help from a many people to whom I must extend my sincere gratitude and
appreciation. First and foremost, I would like thank my supervisor, Mr. Nagendra Ray for
providing necessary guidelines for completing this report. I am thankful to him for his
continuous support, time, reinforcement and motivation for completing the project
successfully. I thank him for his regular feedback and suggestion to improve the report further.
I would like to thank all the respondents who filled the questionnaire sacrificing their time for
my survey to get the precise outcome.
Finally, I would like to thank my family members and friends for uplifting my spirit to
complete the report on time
iii
Table of Contents
Chapter I..................................................................................................................................................1
Introduction............................................................................................................................................2
1.1 Background...................................................................................................................................2
1.2 Statement of Problem...................................................................................................................3
1.3 Research Questions.......................................................................................................................3
1.4 Research Objectives......................................................................................................................3
1.5 Literature Review..........................................................................................................................4
1.6 Theoretical Framework.................................................................................................................5
1.7 Hypothesis.....................................................................................................................................6
1.8 Limitation of the study..................................................................................................................6
1.9 Research Methodology.................................................................................................................7
CHAPTER II...............................................................................................................................................8
Data Analysis...........................................................................................................................................8
2.1 Demographic Analysis...................................................................................................................8
2.1.1 Gender....................................................................................................................................8
2.1.2 Age.........................................................................................................................................9
2.1.3 Education..............................................................................................................................10
2.2 Descriptive Statistics....................................................................................................................11
2.2.1 Descriptive Statistics of Reliability........................................................................................11
2.3 Validity and Reliability.................................................................................................................15
2.5 Regression analysis......................................................................................................................18
2.6 Major Findings and Discussion....................................................................................................20
Chapter III..............................................................................................................................................22
Summary and Conclusion......................................................................................................................22
3.1 Summary of the Findings.............................................................................................................22
3.2 Conclusion...................................................................................................................................24
1
Chapter I
Introduction
1.1 Background
Solar energy refers to the energy received from the sun in the form of solar radiation or the
photo voltaic. Since, the initial implementation of the solar plant is expensive the consumers
stay in dilemma. But in the other side its much more cheaper and implacable than that of
hydropower plant. Solar energy as an eco friendly source of energy not only provides
electricity during load shedding but also reduces the hydropower consumption. Solar energy
plant is a long term term solution despite its high cost of installation at initiation. Solar
photovoltaic (PV) system that generates electricity from the energy of solar radiation can be a
viable option to meet electric energy demand.
In this context, solar photovoltaic (PV) system that generates electricity from the energy of
solar radiation can be a viable option to meet electric energy demand, especially in remote
areas of Nepal however it may be used in urban areas also where the electric load is high to
meet the growing energy demands that have lead to frequent long power outs and load
shedding in these areas.
The amount of global radiation received at a particular loacation varies with the latitude of the
place, time of the year and the day. Besides other local conditions such as cloud cover,
precipitation, sunshine hours, temperature, seasons, and snow covers, regions with dry
climates within 350 laltitude from the equatior are much more suitable for the utilization of
solar energy. The solar energy resource in Nepal is abundant, evenly distributed over the
country and over the seasons. Nepal enjoys morethan 300 sunny days in a year. The average
isolation available in Nepal is around 4.5KWh/m2/day at optimum tilt.
2
1.2 Statement of Problem
There are various sources of alternatives of energy. Among them solar PV is one of them. This
source of energy is much feasible and accessible but due to lack of awareness and financial
constrains the SHS is not getting much effective. The government has provided subsidiary for
the solar PV rural area but not provided such kind of facilities in the urban sectors. The
government and the other NGOs are making plan to promote the solar power in the present
scenario. The solar project in the rural area is still lacking due to lack of knowledge and
awareness of the people with the benefits. In the context to the urban region this kind of solar
power has not effectively run due to cost factor and different alternative sources of energy like
invertors battery and so on.
Is there any significant relationship between alternative energy awareness and solar
use?
Is there any significant relationship between income level of family of respondents and
solar use?
Is there any significant relationship between load shedding hours and solar use?
Is there any significant relationship between cost of solar PV and usage of solar?
To determine the variety, size and cost of solar available in the market of Kathmandu valley.
To determine the socio-economic status of the residents of the study area and their willingness
to pay for solar PV technology.
To make cost-benefit analysis of solar lightning system (PV) and determine the average per
unit cost of electricity from them and compare it with that of hydropower.
3
1.5 Literature Review
WECS, (2006) in the report “Energy Synopsis Report: Nepal” stated that the sectoral energy
consumption in Nepal in 2005/2006 was 90.28% for residential and 7.65% for industrial and
transportation all together while the supply traditional energy sources was 329094000 GJ,
from the renewable was 2134000 GJ (solar 3000 GJ) and from commercial sources was
9172000 GJ. The consumption of traditional energy, renewable energy and commercial energy
has increased.
AEPC, (2009) in the report “Solar Resource Assessment of Nepal” stated that the global
horizontal solar irradiance in Nepal is 4.7 KWh/m2/day and of Pulchowk, Kathmandu is
5.4KWh/m2/day and the potentiality is higher in mountains than plain area of our country.
Pokhrel, (2009) on his article “Kyoto Protocol and Nepal’s Energy Sector” stated that Nepal
can benefit from provisions from CDM under Kyoto Protocol in order to reduce GHG
emission (ER).
Sangraula, (2008) stated that sedimentation is the major challenge for suitable hydropower
development.
Shilpakar, (2008) in their papper “Reliability of Marsyangi Hydropower Station” stated that
the un reliability of the aforementioned station are failure of excitation system, governing
system and cooling water system and sedimentation.
Bajracharya, (2008) in the paper “Briquetting machine for Fuel production from Municipal
Solid waste” reported that management of MSW through briquetting will not only lead to
resource conservation but also provide an opportunity to some extent for employment and
income generation in addition to partial fulfillment of fuel demand of the industrial sector.
Shrestha, (2003) estimated that there are around 3000 domestic solar water heaters in Nepal.
ISIMOD. (2006) in the book “Environment Assessment of Nepal: emereging isssues and
challenges”, stated that the amount of energy consumed is an indicator of the level of
development.
4
1.6 Theoretical Framework
Income Level
Awareness on Solar
Energy
Cost benefit
Analysis of solar
PV
Cost of solar PV
Subsidy on Solar PV
Load
Shedding Hours
5
1.7 Hypothesis
Based on the review of literature some variables have been identified as determinant factors
influencing purchase intention .This research tests the null hypothesis to determine the
relationship between the various variables:
Ho2 There is not significant relationship between income level of family of respondents
and solar use?
Ho3: There is significant relationship between load shedding hour and solar use?
Ho4: There is significant relationship between cost of solar PV and usage of solar?
6
1.9 Research Methodology
Research methodology simply refers to the methods that are going to be taken into account
for conducting the study of the topic chosen. Basically the methods with which I will be
conducting my study are mentioned below and the probable challenges that I may face
while using those methods are too discussed below:
Survey Method:
The survey method will be the key method for conducting my study on this topic. Since I
too am a youth and I belong to the environment where I can communicate to lot of youth
who are riding two-wheelers and some are thinking to purchase one, so it would be quite
easy to know their perception towards purchasing bikes. This method is a relevant one but
as the universal truth strikes that u get drawbacks everywhere in this case the drawback
would be in interacting with the youth it would be hard to convince them about the study I
am making and get reliable information.
Questionnaire Method:
In my case to reveal some information the questionnaire method might help me since I
can prepare questionnaire related to the perception towards purchasing and distribute it in
some workshops and servicing centers. Since in those places the youth are there to
maintain their bikes and they remain there for certain period of time. But I cannot solely
depend on this method since the information may be misleading and my direction of study
may go wrong.
Expected Outcome
After the completion of this study I expect to learn and experience all the research skill. I
would have knowledge about the cost benefit that the residential sector consumers will have if
they implement the solar PV. I expect to learn much more things. I will experience the
technique to do research for further more research in the future.
7
CHAPTER II
Data Analysis
2.1.1 Gender
GENDER
Frequency Percent
Female 30 60.0
Total 50 100.0
Figure 2.1. Explains the percentage of male and female. Out of 50 respondents, 20 were male
and 30 were female. 40% of the respondents were male while 60% were female. The result
shows that there were more males than females respondents.
8
2.1.2 Age
AGE
Frequency Percent
21-30 1 2.0
31-40 24 48.0
41 OR ABOVE 8 16.0
Total 50 100.0
ty
Figure 2.2 explains the portion of different age group of respondents. Out of 50 respondents,
17 were age group below 20 which represents 34%, 1 were between the age group 20-40
which represents 2%, 24 were between the age group 31-40 which represents 24%, 8 were
above than 41 which represents 4% .The result showed the majority of the respondents were
from 31-40 age groups.
9
2.1.3 Education
Frequency Percent
intermadiate 11 22.0
Bachelors 15 30.0
Total 50 100.0
Figure 2.3 shows the percentage of respondents categorized on the basis of education. Out of
50 respondents, 6 respondent had SLC or below which represent 12%, 11 respondent had
intermediate which represent 22%, 15 respondent had bachelors which represent 30%, 18
respondent had masters or above which represent 36%.
10
2.2 Descriptive Statistics
This section represents descriptive statistics of all the variables taken into consideration in this
study. It gives an idea about the level of satisfaction of all independent variables included to
measure the overall “Cost Benefit that the residents can get by the use of solar PV”. four
different variables were used on the basis of literature reviewed.
11
Load shedding is among the
main factor to use solar
energy
50 4.0600 .76692
4.1200 .65900
50
LS 50
Table 2.2 describes the variable reliability which includes two attributes to the benefit that
residential sector can get if they implement the solar PV and load shedding hours. Among the
two attributes Load shedding is among the main factor to use solar energy has the lowest mean
of 4.0600 with standard deviation .76692 Load shedding has forced people to use solar energy
has the highest mean of 4.1200 with standard deviation .65900.This indicates that majority of
respondents are neutral towards load shedding hour and use of solar PV.
12
Solar energy is cheaper to use in
long term
50 3.8600 .90373
3.9400 .68243
The maintenance cost of solar
50
energy is higher than its alternatives
CT
50
Table 2.3 describes the variable reliability which includes four attributes to explain the
attributes to the benefit that the residential sector can get if they implement the solar PV and
cost factor to implement solar PV-[
13
Opinion statements N Mean Std. Deviation
The huge initial cost of implementing
the soar PV affect the consumers. 50 3.8600 .67036
CB 50
Table 2.4 describes the variable reliability which includes two attributes to explain the
attributes to the benefit that the residential sector can get if they implement the solar PV and
cost benefit. Among the two The huge initial cost of implementing the soar PV affect the
consumers has the lowest mean of 3.8600 with standard deviation .67036. The cost is
benefitted from the use of soar PV has the highest mean of 3.9200 with standard deviation .
89989 .This indicates that majority of respondents are neutral towards the cost benefit of using
solar PV
14
construct and hence it is connected to the inter-relatedness of the items within the test. Internal
consistency should be determined before a test can be employed for research or examination
purpose to ensure validity.
1 Awareness .664 4
3 Cost .153 6
5 Income .702 1
The alpha coefficient for the 5 items of Reliability is 0.701. The score on the test suggest that
the items in the items of Reliability have high degree of internal consistency and they are
correlated to each other.
Correlations
AW LS CT IE CB
N 50 50 50 50 50
*
LS Pearson Correlation .288 1 .001 .107 .126
Sig. (2-tailed) .043 .996 .461 .384
N 50 50 50 50 50
CT Pearson Correlation .027 .001 1 .177 .278
Sig. (2-tailed) .855 .996 .220 .051
N 50 50 50 50 50
IE Pearson Correlation -.190 .107 .177 1 -.179
Sig. (2-tailed) .186 .461 .220 .214
N 50 50 50 50 50
*
CB Pearson Correlation -.323 -.126 .278 -.179 1
N 50 50 50 50 50
Table 2.7 shows that the Pearson correlation test indicates that Load Shedding have no
significant relationship with Cost benefit, that doesn’t signifies the correlation at 5%
significant level. So, the H2 is rejected. And the Pearson correlation test indicates that
Awareness, Cost, Income have significant relationship with Cost benefit , that signifies the
correlation at 5%significant level. So, the H1,H2 and H4 are accepted.
16
The Pearson correlation test. indicates a moderate relationship between Awareness and Cost
benefit with p=.022, that signifies the correlation at 5% significant level. So, the H1 is
accepted.
H2: There is no significant relationship between Load shedding and Cost benefit.
The Pearson correlation test. indicates a moderate relationship between Load shedding and
Cost benefit with p=.384, that doesn’t signifies the correlation at 5% significant level. So, the
H2 is rejected.
H3: There is a significant relationship between Cost of solar PV and Cost benefit.
The Pearson correlation test indicates a weak relationship between Cost and Cost benefit with
p=0.051, that signifies the correlation at 5% significant level. So, the H3 is accepted.
H4: There is a significant relationship between Income Level and Cost benefit.
The Pearson correlation test indicates a weak relationship between Income Level and Cost
benefit with p=.214, that signifies the correlation at 5% significant level. So, the H4 is
accepted.
17
Model Summary
R
R Adjusted R Std. Error of Square F
R Square Square the Estimate Change Change df1 df2 Sig. F Change
a
1 .527 .278 .214 .45917 .278 4.337 4 45 .005
dimensio n0
This table shows that R= 0.527 which shows significant relationship among dependent and
independent variables.
ANOVAb
Total 13.145 49
18
Model Standardized
Unstandardized Coefficients Coefficients Collinearity Statistics
a. Dependent Variable: CB
The model summary shows that R= 4.680 which shows a positive strong relationship between
dependent and independent variable. Likewise the ANOVA table shows Frequency=4.337 and
P-value=0.000.
The dependent variable is “cost benefit of Solar PV towards in Nepal” and the independent
variables are Awareness, Load shedding Cost and Income. Thus we are trying to predict the
effect of Awareness, Load shedding Cost and Income in Nepal. Also it is the case of multiple
regression analysis.
Product Image=4.680-3.89AW+-0.019LS+0.455CT-0.258IE
Where
AW=Awareness
LS=Load Shedding
CT=Cost
IE=Income
19
2.6 Major Findings and Discussion
Demographic of respondents
After taking the survey of 50 respondents we observe that there are48 % of male and
52% of female which shows high involvement of female
.
As per the age group, age group below 20 represents 12%, 20-40 years represents 58%,
40-60years represents 26%, and others represents 4% . The result showed that the
majority of respondents were from 20-40 age groups.
The respondents were also categorized in accordance to marital status which showed
that 36% were single, 64% were married. The result showed that the majority of
respondents were married.
Education level was also a category. 58% were graduated, 20% were post graduation,
16% were +2 level and 6% were others. The result showed that the majority of
respondents were graduated.
Among the two The huge initial cost of implementing the soar PV affect the consumers
has the lowest mean of 3.8600 with standard deviation .67036. The cost is benefitted
from the use of soar PV has the highest mean of 3.9200 with standard deviation .89989
.This indicates that majority of respondents are neutral towards the cost benefit of
using solar PV.
Among the two attributes Load shedding is among the main factor to use solar energy
has the lowest mean of 4.0600 with standard deviation .76692 Load shedding has
forced people to use solar energy has the highest mean of 4.1200 with standard
deviation .65900.This indicates that majority of respondents are neutral towards load
shedding hour and use of solar PV.
Among the four attributes like Solar energy provides environmental benefits have the
lowest mean of 3.36 with standard deviation .66271. Solar energy is very efficient to use
has the highest mean of 3.84 with standard deviation .92934 .This indicates that
majority of respondents are neutral towards awareness of solar PV.
20
Result of Hypothesis testing
21
Chapter III
On the basis of literature review various independent variables has been identified to
measure the cost benefit towards Solar P.V. in Nepal. The independent variables
identified for measuring cost benefit are Awareness, Income, Cost, Load shedding.
All the four attributes of Reliability calculates its value above 1 in 5point Likert scale
indicating that the variable reliability which includes four attributes to explain the
benefit that residential sector can get if they implement the solar PV and their
awareness.
All the two attributes to the benefit that residential sector can get if they implement the
solar PV and load shedding hours. calculates its value above 1in 5point Likert scale
indicating that customers behavior with purchase intention
All the variable reliability which includes four attributes to explain the attributes to the
benefit that the residential sector can get if they implement the solar PV and cost factor
to implement solar PV.
All the Two attributes of packaging of product calculates its value above 1 in 5 point
Likert scale indicating describes the variable reliability which includes two attributes
to explain the attributes to the benefit that the residential sector can get if they
implement the solar PV and cost benefit.
22
There are 19items under Cost benefit of Solar PV in Nepal, it measures 0.701 alpha
coefficients. The test score suggest that items have high degree of internal consistency
and they are correlated.
The Cronbach’s Alpha Index Income satisfies the reliability and validity test.
Literature review of previous studies also indicated that these variables played
significant role in measuring Cost benefit of using solar PV.
From the hypothesis testing done between the cost benefit of Solar PV Nepal the
considered independent variables it was found that all the considered independent
variables had significant relationship with dependent variable.
23
3.2 Conclusion
Internet adoption among Nepalese has been rapidly increasing over the last one decade.
Nepalese product has also risen to the occasion by offering new channels of delivery to its
customers. But proportionately Nepalese customers of Solar PV are lesst. It has been observed
that dissatisfaction is one of the important reasons for the low purchase of Nepal product. So
this study made an attempt to measure the Cost benefit of Solar PV in Nepal
It has been tried to identify the important factor that will affect the purchase of Solar PV. The
qualitative analysis of the model confirmed that the factors identified by the researcher namely
Awareness, Cost, Load Shedding and Income.
Literature review of the previous studies indicated that these variables played significant role
in measuring purchase of Solar PV. Therefore, it concluded that the first objective of the study
has been successfully achieved.
From the finding of this study, it can be concluded that the purchase intention are directly
affected by the three independent variables namely Awareness, Cost, and Income .
24
References:
ICIMOD and ADB. (2006) Environment assessment of Nepal-Emerging, issues and challenges Kathmandu.
Hufschfidt, (1983) Environment Natural System and development. Baltimore: Article 26, John Hopkins
University Press
Thomas C. (2007) Environment economics. New Delhi: Thompson Learning inc. article2 (12-13)
25
Appendix
Dear Respondents,
For the completion of my BBA Degree, I kindly invite you to fill out my survey questionnaire entitled
“COST BENEFIT OF SOLAR PV”. So I would like to request you to fill up the questionnaire as it will enable
me to identify them on solar energy usage. .
I assure you that the information provided by you will be strictly confidential and will be used for
statistical complications only.
Sanad Maharjan
APEX College
General Information
1. Gender
o Male
o Female
2. AGE
o 20 OR UNDER
o 21-30
o 31-40
o 41 OR ABOVE
3. EDUCATION
o SLC or below
o Intermediate
o Bachelors
o Masters or above
o Yes
o No
26
5. Are you using solar energy?
o Yes
o No
o Yes
o No
o Yes
o No
8. Which there sources of energy have you been using during load shedding hours?
o Generator
o Inverter
o Solar energy
o Extended wire
o None
o Below 50
o 51-100
o 101-200
o 201-300
o 301 or above
27
Section B: Independent variables
Please indicate the level of agreement with the following statements .Different keys (1-6) indicates
different level of agreement respectively as:
Questions. 1 2 3 4 5
28