Comparative Life-Cycle Cost Analysis Of Solar Photovoltaic Power System And Diesel Generator System For Remote Residential Application In Nigeria

  • PE Ugwuoke National Centre for Energy Research and Development, University of Nigeria, Nsukka
  • OU Oparaku National Centre for Energy Research and Development, University of Nigeria, Nsukka
Keywords: Comparative life-cycle cost, PV Power System, Diesel Generator, Net Present Value


Many homes in Nigeria are in remote locations where grid electricity supply could not be extended. This paper attempts to present a concise life-cycle-cost comparison of diesel generator power supply system and photovoltaic power system for a remote rural application. In this comparative analysis, conceptual designs were developed for photovoltaic-power and diesel powered systems to meet the base-case load requirements. A case study for cost comparison of 3KWp photovoltaic home system and 3KVA diesel generator was considered. Financial evaluation of providing a 3KWp photovoltaic home system in remote location was carried out and compared with that of a 3KVA diesel generator. These two systems were compared using a 20-year life-cycle-cost analysis, to obtain the net present value (NPV) or “present worth” of the systems comprising of the total capital and operating costs over the period. Then sensitivity analyses were presented, which further explore system comparisons as certain base-case assumptions like capital cost, and diesel fuel costs are varied. The results show the photovoltaic system to be more cost-effective at low-power ranges of electrical energy supply.
KEY WORDS: Comparative life-cycle cost; PV Power System; Diesel Generator; Net Present Value.
Global Journal of Engineering Research Vol.3(1&2) 2004: 9-15

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eISSN: 1596-292X