ETB 4192

ASSIGNMENT I

COST EFFECTIVENESS OF INSTALLING A

PHOTOVOLTAIC (PV) SYSTEM FOR A HOUSE

Name :- Nanayakkara M. U.

Index No :- EGT/16/493

Department :- Engineering Technology

Field :- Construction and Building Services

INTRODUCTION

In 2015, 52% of Sri Lanka’s electricity was generated through fossil fuels. Indigenous
fossil fuel resources are scare, so the fossil fuel used for electricity is imported, a significant
part of Sri Lanka’s import expenditure. As a developing country, Sri Lanka’s demand for
electricity is going to increase in the future. It is imperative therefore, for Sri Lanka to secure
its energy future by focusing on the development and adoption of indigenous, renewable
sources of energy to meet this growing demand and reduce the economic weight of imports.

Solar energy has rapidly becoming as an alternative energy source across the world
due to low generation costs involved as a free natural resource, and the favorable
environmental impact with no emissions and environmental degradation. In past recent years
the technology of solar energy and its usage has experienced a phenomenal change and rapid
growth. Promotional and encouraging government policies about solar energy, technological
improvements in less setup and maintenance cost, growing public awareness in
environmental issues, easy way to cutting down the users electricity bills with assured power
supply 24x7 are some of the facts that have facilitated and sustained this strong interest in the
minds of the users about solar technology worldwide including Sri Lanka.

Sri Lanka is located near to the equator, therefore receives an abundant supply solar
radiation year around. Solar radiation over the island doesn’t show a marked seasonal
variation. As estimated in the solar resource map developed by NREL of the USA, over most
parts of the flat dry zone in Sri Lanka, which accounts for two-thirds of the land area, solar
radiation varies from 4.0 – 4.5 kWh/m2/day. But there are a number of factors that can affect
how much electricity will generate from any solar panels installed.

Solar photovoltaic is a derivation from the combination of words. Where photo

suggests the word light and voltaic suggests the word electricity. Highly-purified silicon
materials are used as photovoltaic material that, converts sunlight directly into electricity.
 A grid-interactive photovoltaic (PV) system uses solar energy to generate renewable
power that charges batteries for use during power failures and feeds power into the electricity
grid.

Grid-Interactive PV System with Battery Backup is a type of system incorporates

energy storage in the form of a battery to keep “critical load” circuits in the house operating
during a utility outage. When an outage occurs the unit disconnects from the utility and
powers specific circuits in the home.

Figure 2: Residential grid-tied solar PV system diagram without battery.

Figure 3: Residential grid-tied solar PV system diagram with battery.

HOW WOULD YOU CALCULATE THE COST EFFECTIVENESS OF
INSTALLING A SOLAR PANEL FOR YOUR HOME?

Suppose you are to install a solar panel (photovoltaic, PV, system) to your home. As
following the below guidelines and factors related to your selected facility, you are tasked
with evaluate the cost effectiveness (value for the money spent) of installing a solar panel.
Conduct an detailed analysis with below considerations, and critically evaluate the whether it
is economically viable to install a Solar panel, PV system, to your considered facility.

About the Building

The building is mainly with the total external length of 17.35m and the total external
width of 10.15m. The location of the building was assumed about 360m away from the sea
and high fall of sun rise and warm climate during the day time. The report was created for
five members, living in the house. The usage of energy equipment and the monthly energy
consumption has been calculated below. The bill was calculated using the CEB bill
calculator.

Figure 4: Plan of the residence/building.

Figure 5: CEB bill calculator.
The annual cost calculation of the building for electricity as follows;

The monthly electricity consumption : 174.67 kWh (Appendix I)

Monthly Electricity bill : Rs. 3843.50

Average annual electricity bill : Rs. 3843.50 * 12

: Rs. 46122.00

The area of the building : 17.35 m *10.15 m

: 176.10 m2

The occupants in the building has been used 174.67 kWh over the area of a 176.10 m 2
throughout a whole month.

About the location

As earlier mentioned, the building located near the coastal line and the roof of the
building has been made up with cement roofing sheets as a gable roof. The vegetation over
the roof is very low and it is a uncover roof.

About the solar PV system

The current usage of electricity in the building is about 180 units per month. The solar
PV system which produces 188 units is 1.6kW system. After considering the loan installment
and the monthly electricity bill, the following system was selected.

Approx. CEB Bill/Month Rs : 3000 - 6000

Capacity with 2.0 kW, Tier 1 inverter (10 year warranty (SMA, Solar Edge, Fronius
or equivalent)), Tier 1 solar Panels (10 year Workmanship Warranty; 20 year Performance
Warranty to 80% (Jinko, National,Rene Solar or equivalent)) for a Rs. 435,000.00.

Loan

The loan was calculated according to the criteria given by the “Soorya Bala
Sangramaya” project using semi government bank. The 10% of the total amount should
deposit by the customer and the loan applicable for the 90% of total amount. The monthly
installment for the loan amount Rs. 391,500.00 was calculated as Rs. 7,938.21 within 5 years
(NSB loan calculator).
Fixing the Solar PV panels

As earlier mentioned the roof is a gable roof and main two sides faced to north and
south. The South is usually obtaining high radiation than other direction so; the roof is a
perfectly fixed for the purpose. Also the angle of the roof is about 19 0 and the allowable angle
range is 150 - 400. For 2.0 kW solar PV system, 8 solar panels in dimensions with 1.6 m X 1
m are assigned. Total area for the solar panels will be 12.8 m 2. The total roof area is about
176.10m2 and as it is a symmetrical roof one side is almost enough for the purpose. The roof
is made up of coconut rafters and Cement roofing sheets; assumes that the roof is strengthen
to fix the equipments.

Figure 6: NSB loan Calculator.

Benefits

According to the specifications and calculations of the PV system, there will be Rs.
4,400.00 amount of income by selling excess to the CEB (assume Rs.22.00 per unit). For a
year it will be Rs. 52,800.00. The loan payback period is for 5 years and up to five years there
will be no profit. However customer is free of paying the electricity bill; there he can allocate
that amount of money to pay the loan instead (Appendix II).

Summary

Monthly Average Electricity bill : Rs. 3843.50

Annual Average electricity bill : Rs. 46122.00

The Estimated Capacity of PV System : capacity with 2.0 kW

Price of the PV system : Rs. 435,000.00

Expected Life Time of the System : 25years

Initial Investment By Customer : Rs. 43,500.00 (10%)

Requested Loan Amount : Rs. 391,500.00 (90%)

Interest Rate : 8% per year

Pay Back Period : 5 years

Estimated income from CEB per month : Rs. 4,400.00

Self Consumption for Estimated 25 years : Rs. 1,049,275.50

Total income from CEB for Estimated 25 years : Rs. 1,320,000.00

Total Profit for Estimated 25 years : Rs. 270,724.50 (Appendix II)

Conclusion

The PV solar system is a beneficial move for each and every house in economically as
well as environmentally. The Profit calculation for the estimated 25 years was done after
deducting the self consumption. It was Rs. 270,724.50. The consumption of grid energy has
been 100% avoidable as the estimation and that helps to reduce the production of non
renewable energy in the grid. The customer can gain an income after paying the loan and it
helps to improve the per capita income of a country.
Refferences

 ElectricityBoard SriLanka. (2017). CEB. Retrieved 05 31, 2020, from Calculate your
electricity bill yourself: https://www.ceb.lk/bill-calculation-commercial/en

 G.H.D.Wijesena, A. (2018). Solar Energy and its Role in Sri Lanka. International
Journal of Engineering Trends and Technology ( IJETT ) , Volume 65 Number 3.

 Group, P. M. (2009-2020). SolarQuotes. Retrieved 05 31, 2020, from 2kW Solar

System: https://www.solarquotes.com.au/systems/2kw/

 India), M. S. (2020). 100% ELECTRICITY GENERATION THROUGH RENEWABLE

ENERGY BY 2050. Co-publication of the Asian Development Bank and the United
Nations Development Programme.

 IT, G. (2019). GensoPower. Retrieved 06 02, 2020, from Your Bill Value Matters for
Recovery of Investment: http://www.gensopower.com/money-saving/

 LTD, C. E. (2016). CEYLON ECO SOLAR (PVT) LTD. Retrieved 06 03, 2020, from
PRICES: http://www.ceylonecosolar.com/price.html

 NSB. (2018). NSB. Retrieved 06 01, 2020, from Personal Loan Calculator:
https://www.nsb.lk/loan-calculator/?

 Sangramaya, S. B. (2019). SOORYA BALA SANGRAMAYA-LECO LOAN SCHEME.

Soorya Bala Sangramaya LECO Loan-.
APPENDIX I
DAYS
HOURS
PER TOTAL
LOCATION EQUIPMENT NO. W PER
MONT UNITS
DAY
H
1 5 24.00 30 3.60
Bulbs 6 5 7.00 30 6.30
3 5 1.00 3 0.05
Living room Ceiling fan 2 70 2.00 15 4.20
TV 1 50 4.00 30 6.00
Satellite antenna 1 6 4.00 30 0.72
Mini fish tank motor 1 3 10.00 30 0.90
Bulbs 1 15 5.00 30 2.25
Bed room 1
Phone charger 1 10 2.00 30 0.60
Bulbs 1 15 6.00 30 2.70
Laptop 1 65 8.00 30 15.60
Bed room 2 Printer 1 50 0.25 10 0.13
Phone charger 1 27 2.00 30 1.62
fan 1 40 10.00 30 12.00
Bulbs 1 15 8.00 30 3.60
Fan 1 40 8.00 20 6.40
Bed room 3
Iron 1 1200 0.50 30 18.00
Phone charger 1 18 2.00 30 1.08
Bed room 4 Bulbs 1 15 6.00 30 2.70
1 5 2.00 30 0.30
Bulbs
1 15 8.00 30 3.60
Blender 1 550 0.25 15 2.06
Kitchen
Rice cooker 1 550 0.75 30 12.38
Toaster 1 1500 0.50 10 7.50
Heater jug 1 300 1.00 30 9.00
Bulbs 1 15 7.00 30 3.15
Dinning room Refrigerator 1 115 8.00 30 27.60
Radio 1 500 1.00 15 7.50
Wash room1 Bulbs 1 15 1.00 30 0.45
Wash room2 Bulbs 1 15 1.00 30 0.45
Corridor Bulbs 1 25 8.00 30 6.00
1 25 8.00 30 6.00
2 15 0.50 2 0.03
Outdoor Bulbs
2 45 0.50 2 0.09
2 60 0.50 2 0.12
TOTAL ENERGY CONSUMPTION 174.67
APPENDIX II
Time
Self consumption Units sold to CEB Loan installment Energy Savings
(year)
1 46,122.00 52,800.00 95,258.52 -88,580.52
2 92,244.00 105,600.00 190,517.04 -177,161.04
3 138,366.00 158,400.00 285,775.56 -265,741.56
4 184,488.00 211,200.00 381,034.08 -354,322.08
5 230,610.00 264,000.00 476,292.60 -442,902.60
6 276,732.00 316,800.00   40,068.00
7 322,854.00 369,600.00   46,746.00
8 368,976.00 422,400.00   53,424.00
9 415,098.00 475,200.00   60,102.00
10 447,383.40 528,000.00   80,616.60
11 492,121.74 580,800.00   88,678.26
12 536,860.08 633,600.00   96,739.92
13 581,598.42 686,400.00   104,801.58
14 626,336.76 739,200.00   112,863.24
15 650,320.20 792,000.00   141,679.80
16 693,674.88 844,800.00   151,125.12
17 737,029.56 897,600.00   160,570.44
18 780,384.24 950,400.00   170,015.76
19 823,738.92 1,003,200.00   179,461.08
20 839,420.40 1,056,000.00   216,579.60
21 881,391.42 1,108,800.00   227,408.58
22 923,362.44 1,161,600.00   238,237.56
23 965,333.46 1,214,400.00   249,066.54
24 1,007,304.48 1,267,200.00   259,895.52
25 1,049,275.50 1,320,000.00   270,724.50
*the energy consumption was assumed as a minus value for the profit calculation.