Economic evaluation of solar photovoltaic technology and its application in India

The main aim of this dissertation is to identify the conditions under which decentralized energy systems such as solar photovoltaic (PV) systems can be more economical than conventional electricity generating systems for meeting the energy demands of households in the remote and rural areas of India. This study assesses the economic viability of solar PV systems on the basis of the life-cycle costs of providing comparable services through conventional grid extension and conventional gasoline, kerosene, and diesel fuel generator sets. It also provides an overview of the possible areas where PV systems can be used in India.;The results of the economic analysis show that PV systems can be cheaper on a life-cycle cost basis than conventional energy sources. India is a country with favorable amounts of sunshine and offers good potential for the use of solar PV systems for providing small loads to the remote and inaccessible areas of the country where it is too costly to supply conventional electricity at the present time. Initial electrification of these areas by solar PV systems is ideal where the grid system is too costly to be extended or where conventional fuels are not available due to high transportation costs and inadequate supply. The states of Assam, Bihar, Madhya Pradesh, Manipur, Meghalaya, Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh, and West Bengal have been identified to be the possible areas where PV systems can be economical. These states have many villages that are unelectrified due to physical and/or financial constraints. These villages, with small load potentials at present, and situated at far away distances from the grid can be good candidates for electrification by the use of solar PV systems. Of course, one cannot rule out the possibility that these villages may also receive grid extensions in the future when the loads justify the investment.;Thus, small PV systems can be economically viable today for meeting the energy needs of households in the remote areas of India. As PV conversion efficiencies continue to improve and the costs of PV modules decline even further in the future, a greater number of PV applications can become economically competitive. However, the results also show that for heavier loads, conventional grid extension or diesel generation may be the most economical source of electricity to the remote and rural areas of the country.