Cost-Benefit Analysis of the Installation of 1.

60 KWp Grid-Tied Solar Rooftop

Photovoltaic (PV) System for a Residential Consumer

I. Introduction

Renewable power is booming, as innovation brings down costs and starts to deliver
on the promise of a clean energy future. Solar and wind generation are breaking
records and being integrated into the national electricity grid without compromising
reliability. This means that renewables are increasingly displacing “dirty” fossil fuels in
the power sector, offering the benefit of lower emissions of carbon and other types of
pollution. But not all sources of energy marketed as “renewable” are beneficial to the
environment. Biomass and large hydroelectric dams create difficult tradeoffs when
considering the impact on wildlife, climate change and other issues. With a view to the
environment, sustainability is about managing and protecting earth’s natural resources,
ecosystem, climate and atmosphere so that the current generations and future
generations will live a decent life and millions of other species with whom we share the
planet will also benefit. The World Commission on Environment and Development
popularized the concept sustainable development goal (SDG) in 1987. Their report
defines the idea as a “development which meets the needs of the present without
compromising the ability of the future generations to meet their needs. “Engineers play
an important role in sustainable development by planning and building projects that
preserves natural resources, are cost efficient and support human and natural
environments. Engineering skills will be in demand include clean water and sanitation
for all (goal 6), availability of sustainable energy sources (goal 7), creating strong and
resilient infrastructure (goal 9) and livable cities (goal 11). Compared to its neighbors,
the Philippines is considered a global leader in renewable energy according to Energy
Tracker Asia. Over 47% of its total energy use comes from green resources. The
Philippines, alongside Indonesia are the countries with the highest concentration og
geothermal power generation in Asia. It has the world’s third largest installed
geothermal power capacity at 1,918 megawatts (MW) with Indonesia coming a close
second and the united states coming out on top. However, according to the WWF-
Philippines Building Momentum for low carbon development study, an even more
ambitious scenario of 100% renewable energy is feasible. The reasons for optimism are
rooted in the renewable energy potential in the Philippines. The report shows that the
Philippines could aim higher. This would further add 1,200 MW of geothermal 2308 MW
of hydropower, 235 MW of biomass, and 7,404 MW of wind, all before 2030.

The Philippines enjoys a sizeable amount of sunshine. In fact, the country can
harness the sun’s power as its radiation across the country has a power generation
potential of 4.5 to 5.5 kWh per square meter per day. The Net-Metering is the first
non-fiscal incentive mechanism fully implemented under the Renewable Energy (RE) Act

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of 2008. Through the installation of solar photovoltaic (PV) panels up to 100 KW, house
owners and commercial establishments can now partly satisfy their electricity demand
themselves. What is even greater to this cause is that end-users can help mitigate the
effects of climate change through the use of clean energy technologies. It will also
contribute in lessening the country’s dependence on costly imported fossil fuels. Thus,
the Department of Energy lauds the different RE stakeholders for coming together and
publishing the “Net-Metering Reference Guide: How to avail of solar roof tops and other
renewables below 100KW in the Philippines. Through this informative reference, the
energy supports the sectors the consumers who wish to invest in solar roof tops.

The world is currently facing a climate change, as a Engineering students, what I

can do is to promote the usage of renewable and sustainable energy sources. The
highly recommended for each houses and infrastructure is inventing in solar roof tops
as I have seen the good effect of installing this type of clean energy source and will
lessen your expenses on electricity bill.

II. Objective

To determine the optimum design of a grid-tied solar PV system for a residential

consumer and conduct a ROI analysis of the system. Specifically, it aims to:

1. To determine the daily load consumption in KWhr (Pd) of the residential

consumer;

2. To determine the total Watt-peak rating of the solar PV module for the
residential consumer;

3. To determine the size of the inverter for the system; and

4. To determine the ROI of the system.

III. Design Analysis

1) Computation of the power demand consumption

Base on the data which the month used are December, January, February that
in the table below which was bill1, bill2, bill3.The total power consumption needed to
be supplied by the system was based on the electricity bill account of the consumer.
On the average, the total daily power demand is 445KWh. To solve the average add all
the monthly power consumption (Whr) then divide it by how many months used in the
data. The table below summarizes the computation.

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 Table 1. Power Demand Consumption
Billing Statement Monthly Power Consumption, Whr
Bill 1 139,000
Bill 2 168,000
Bill 3 138,000
Average 148,333.3333

From the above average power demand consumption, the daily load
consumption is _KWhr. See below computation.

148,333.3333
Pd= =4,944.4444 KWhr
30

2) Sizing of the PV panel

The total watt-peak rating considered for the sizing of the PV panel is 320 Wp.
The total daily power demand is divided by 320Wp is 1.60. The team recommended to
use 5-320Wp mono german cell solar PV modules series connected.

Table 2. The amount of every panel in the market.

Panels Unit price Amount Ratings of Panels Remarks
1. Npv 5.021701 5 ₱ 7,588.00 ₱37,940.00 320 watts spotloads : 2ACU
2. Npv 7.304293 7 ₱ 5,470.00 ₱38,290.00 220 watts
3. Npv 2.975823 3 ₱10,250.00 ₱30,750.00 540 watts

The chosen panel which has 320 watts that fit to the total amount of PV which is
1606.944.
An amount of 320 watts that requires 5piece of solar panels.
The roof of the house can occupy this kind of panels that has a dimension of
100x5x200cm.
The data above shows the availability of panels in the market and its value.

3. Sizing of the inverter

The size of the on-grid inverter was based from the maximum PV power. This is
the product of 5 panels and the watt-peak rating of each panel- 320Wp. This is
equivalent to 1.60 KW. The formula for solving the inverter is piece of panel multiply
by the needed watt peak. Based on the minimum requirement of the Philippine
Electrical Code (PEC) and the availability of the size in the market, the recommended
size of the inverter is 1.6 KW. The table below shows the availability of inverter in the
market and its price.

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 Table 3. INVERTER

INVERTER
1600 watts
Rating Price
1. SOFAR SOLAR INVERTER 1.6KW ₱ 13,000.00
2.Grid tied inverter Sofar Mass 1.6KW ₱ 24,801.00
String inverter single phase with
limiter and wifi
The best inverter for the panels is SOFAR SOLAR INVERTER because it has a low price
than the other but interms of descriptions and offer, the other has it. The second
choice inverter can be used if you want a limiter and wifi. It is goods if you are working
at home because it has already a wifi but another installment fee for that and wifi fee
every month.

IV: Return of Investment

a) Line-Item Budget

Table 4. Line-Item Budget for 1.60KWp Solar PV System

Equipment Unit Price Amount

1. 5- Solar PV Panel , (Specs) Php 7,588 Php 37,940
2. 1-Inverter (Specs) Php 13,000 Php 13,000
Subtotal Php 50,940
3. Labor Cost (35%) Php 17,829
Total Php 68,769.00

b) Computation of the Return of Investment (ROI)

Electricity Price rate: Php 14.00/kWhr

Monthly Electricity Bill: Php 148.33kWhr x14.00/kWhr = Php 2,076.62

Monthly Savings: Php 2,076.62

Yearly Savings: Php 2,076.62 x 12=Php 24,919.44

Php 68,829.00
ROI= =2.76 years
Php24,919.44

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DISCUSSION:

Renewable energy, often referred to as clean energy, comes from natural resources or
processes that are constantly replenished. For example, sunlight or wind keep shinning
and blowing, even if their availability depends on time and weather. Creating a solar
panel are effective and useful to save electricity, it will lessen your electric bills. In the
information above that I collect and take research on how to invest the money for solar
panels and the money spend will comeback after a year’s. investing money for solar
panel will help you after a year. To sum up all information that I gathered, putting solar
panels to your house is effective and you can save money and then used it for other
materials that will improve your energy saver and invest more.

As renewable use continues to grow, a key goal will be to modernize electricity grid,
making it smarter, more secure and better integrated across regions.

Prepared by:

TUQERO, MELINYO L.
BSEE-2C

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