SUMMARY ARTICLE

Techno-Economic Feasibility Assessment of Grid-

Connected PV Systems for Residential Buildings in
Saudi Arabia—A Case Study

Department of Electrical
Engineering
Al Baha University
Dr. Ahmad Tazay
Student Names:

DUE DATE : 00/00/0000

OVERVIEW
This project is a case study conducted in Jeddah, Saudi Arabia, to assess the techno-
economic feasibility of a grid-connected PV system in a typical residential unit. It aims
to evaluate the viability of installing a grid-connected PV system in terms of technical
and economic aspects. The study likely involves data collection, analysis, and modeling
techniques to evaluate performance indicators and economic metrics. The project may
also include tilt angle optimization analysis and sensitivity analysis to optimize the PV
system configuration and assess the impact of input variability.

OBJECTIVE
The high-level objective of this article is to conduct a feasibility study on the installation
of a grid-connected PV system in a typical residential unit in Jeddah, Saudi Arabia. The
article aims to assess the techno-economic viability of the PV system by considering
various performance indicators and economic metrics. The study likely aims to provide
insights into the technical feasibility, energy yield, capacity factor, and performance ratio
of the system. Additionally, the economic aspects such as the levelized cost of energy,
net present value, internal rate of return, and payback period are assessed. Overall, the
objective is to evaluate the feasibility and potential benefits of implementing a grid-
connected PV system in a residential setting in Jeddah.
SYSTEM MODEL
The system model involves a grid-connected PV (photovoltaic) system. The model takes
into account various factors, including weather data, tilt angle considerations, and
technical performance metrics to evaluate the system's performance.The system model
considers the solar radiation potential of the location, specifically in Jeddah, Saudi
Arabia. Average weather data from the King Abdulaziz International Airport
Meteorology Station is used, with a focus on global horizontal irradiance (GHI) and
ambient temperature.Tilt angle is a crucial parameter in the model, and different tilt
angles ranging from 0° to 90° are considered to determine the monthly and annual
optimum tilt angles for maximizing solar radiation capture.Technical performance
metrics such as the yield factor (YF) and capacity factor (CF) are used to assess the
system's productivity and overall performance. The yield factor measures the system's
energy yield divided by the PV array's nominal power, while the capacity factor is the
ratio of the actual annual energy yield to the maximum potential energy yield when
operating at full capacity over one year.In addition to the technical metrics, economic
metrics modeling is also incorporated in the system model. This includes calculating the
performance ratio (PR), which represents the quality of the PV system, and economic
feasibility indices such as the levelized cost of energy (LCOE), net present value (NPV),
internal rate of return (IRR), and payback period (PbP). These metrics help assess the
financial viability and profitability of the PV system by considering factors such as cash
flow, costs, revenues, and discount rates.Overall, the system model combines weather
data, tilt angle considerations, technical performance metrics, and economic metrics to
evaluate the performance and financial feasibility of the grid-connected PV system
LOAD
Considering the characteristics of Jeddah and the context of a grid-connected PV system,
the load in the case study could be associated with various types of electrical energy
consumption typically found in residential, commercial, or industrial settings. Some
possible examples of loads in Jeddah could include:

1-Residential Load: This refers to the energy consumption of households in the area,
encompassing lighting, appliances, air conditioning, water heating, and other domestic
electrical needs.

2-Commercial Load: This includes the electricity demands of businesses and

commercial establishments, such as offices, shops, restaurants, and malls. It may involve
lighting, HVAC systems, refrigeration, office equipment, and other commercial
appliances.

3-Industrial Load: This represents the energy requirements of industrial facilities,

factories, and manufacturing plants in the area. It could involve heavy machinery,
production lines, lighting, ventilation systems, and other industrial processes .
PROBLEM SUMMARY
The problem that this project addresses is the need for sustainable and renewable energy
solutions in Jeddah, Saudi Arabia. With increasing energy demands, rising electricity
costs, and concerns about environmental impact, there is a growing interest in harnessing
solar energy through photovoltaic (PV) systems.The project aims to resolve the
challenge of meeting energy requirements in Jeddah by implementing a grid-connected
PV system. By utilizing solar power, the project seeks to reduce dependence on
traditional fossil fuel-based electricity generation, which is both costly and has negative
environmental consequences.The specific objectives of the project include optimizing
the performance of the PV system by considering factors such as weather data, tilt angle,
and technical performance metrics. Additionally, the project aims to evaluate the
economic feasibility and profitability of the PV system by analyzing metrics such as the
levelized cost of energy (LCOE), net present value (NPV), internal rate of return (IRR),
and payback period (PbP).By addressing the need for clean and sustainable energy, this
project contributes to the overall goal of transitioning towards a greener and more
sustainable energy landscape in Jeddah. It also helps in reducing greenhouse gas
emissions, promoting energy independence, and potentially lowering electricity costs for
consumers.
THE SOLUTION
The project addresses the problem of the need for sustainable and renewable energy
solutions in Jeddah by implementing a grid-connected PV system. Here's how it solves
the problem :
Renewable Energy Generation: By installing a grid-connected PV system, the project
provides a reliable source of renewable energy. The solar panels capture sunlight and
convert it into electricity, reducing the reliance on traditional fossil fuel-based energy
generation methods. This allows the target audience to tap into a clean and sustainable
energy source.

Cost Savings: The PV system helps the target audience save on electricity costs. Solar
energy is abundant in Jeddah due to its sunny climate, and harnessing this energy reduces
the need to purchase electricity from the grid. As a result, the target audience can lower
their energy bills and achieve long-term cost savings.

Environmental Impact: The project significantly reduces the environmental impact

associated with electricity generation. Solar energy is a clean source of power that
produces no greenhouse gas emissions during operation. By utilizing solar power, the
project helps mitigate climate change and contributes to a greener and more sustainable
future.
Energy Independence: The PV system promotes energy independence for the target
audience. Instead of relying solely on the grid, which is subject to fluctuations in
electricity prices and potential power outages, the target audience can generate their own
electricity. This enhances energy security and resilience, providing a reliable source of
power.Economic Feasibility: The project assesses the economic feasibility and
profitability of the PV system through metrics such as the levelized cost of energy
(LCOE), net present value (NPV), internal rate of return (IRR), and payback period
(PbP). This analysis helps the target audience make informed decisions about the
financial viability of investing in solar energy and ensures that the project aligns with
their economic goals.
By addressing these aspects, the project enables the target people in Jeddah to embrace
sustainable energy practices, reduce their carbon footprint, save on electricity costs, and
contribute to a more environmentally friendly and energy-efficient future.
ANALYSIS
in the context of the grid-connected PV system, it is challenging to provide a detailed
analysis. However, I can offer a general approach to analyzing competitors and
highlighting the potential superiority of the proposed solution. Here are the key points
to consider:

1. Competitors' Offerings:
- Identify the main competitors in the market who offer similar grid-connected PV
systems.
- Analyze their features, specifications, and pricing structures.
- Assess the competitors' track record, reputation, and customer reviews.
- Understand the strengths and weaknesses of their solutions, such as system efficiency,
reliability, scalability, ease of installation, and maintenance requirements.

2. Reasons for Inability to Solve the Target Audience's Problem:

- Identify the specific problem or pain points faced by the target audience.
- Evaluate why competitors' offerings have been unable to address these problems
effectively.
- Examine potential shortcomings such as high costs, limited energy production, lack of
flexibility, complex installation processes, or inadequate customer support.

3. Superiority of the Proposed Solution:

- Highlight the unique features and benefits of the proposed grid-connected PV system.
- Emphasize how these features directly address the target audience's problem.
- Showcase the advantages of the proposed solution, such as higher energy production,
improved efficiency, lower costs, user-friendly installation, enhanced reliability, and
exceptional customer support.
- Demonstrate any innovative technologies or approaches incorporated into the
proposed solution that set it apart from competitors.
- Provide evidence, such as case studies, customer testimonials, or performance data, to
support the claim of superiority. By conducting a comprehensive analysis of
competitors' offerings, understanding their limitations, and showcasing the superior
aspects of the proposed solution, you can effectively position the solution as the best
choice for the target audience.
KEY NEXT STEPS
Challenges faced while implementing their solution:
1. Financial challenges: Securing adequate funding for the implementation of the grid-
connected PV system can be a significant hurdle. The high upfront costs associated with
equipment, installation, and grid integration may pose financial constraints.
2. Regulatory and policy barriers: Navigating through complex regulations and policies
related to renewable energy, permits, licenses, and grid connection can be challenging
and time-consuming.
3. Technical complexities: Designing and integrating a grid-connected PV system
requires expertise in solar energy, electrical engineering, and grid integration.
Overcoming technical challenges related to system design, component selection, and
ensuring optimal performance can be demanding.
4. Site-specific considerations: Each installation site may present unique challenges such
as limited space, shading issues, or grid infrastructure limitations. Adapting the solution
to different site conditions and ensuring compatibility can be a challenge.
5. Stakeholder engagement: Engaging with various stakeholders, including utilities,
regulatory bodies, local communities, and potential customers, is crucial but can be
complex. Building consensus, addressing concerns, and obtaining necessary
permissions require effective communication and negotiation.

Additional opportunities generated by solving the problem:

1. Cost savings and energy independence: Implementing a grid-connected PV system
allows users to generate their own electricity, reducing reliance on traditional energy
sources and potentially lowering energy bills.
2. Environmental benefits: Utilizing solar energy contributes to reducing greenhouse gas
emissions and promoting sustainability, aligning with environmental goals and
regulations.
3. Revenue generation: Excess energy generated by the grid-connected PV system can
be fed back into the power grid, potentially allowing users to earn revenue through net
metering or feed-in tariff programs.
4. Brand reputation and market positioning: Embracing renewable energy solutions
enhances the organization's brand image, attracts environmentally conscious customers,
and differentiates it from competitors.
5. Research and development opportunities: Implementing the solution drives further
innovation in the renewable energy sector, leading to the development of new
technologies, improved system efficiency, and cost reductions.

Crucial next steps they will take to execute their project:

1. Detailed project planning: Developing a comprehensive project plan that includes
timelines, resource allocation, and specific tasks to ensure smooth execution.
2. Procurement and logistics: Sourcing the necessary equipment, components, and
materials required for the grid-connected PV system and managing logistics efficiently.
3. Installation and integration: Executing the installation process, ensuring proper
placement and connection of solar panels, inverters, and other system components.
Integrating the system with the existing power grid infrastructure.
4. Testing and performance evaluation: Conducting thorough testing and performance
evaluation of the grid-connected PV system to ensure optimal functionality and
adherence to specifications.
5. Monitoring and maintenance: Establishing a robust monitoring system to track system
performance, detect any issues or inefficiencies, and conducting regular maintenance to
maximize system uptime and efficiency.
6. Stakeholder engagement and collaboration: Continuously engaging with stakeholders,
including utilities, customers, and regulatory bodies, to foster collaboration, address
concerns, and ensure compliance with regulations.
7. Continuous improvement and innovation: Investing in research and development
activities to enhance the system's performance, explore new technologies, and stay ahead
of market trends and evolving customer needs.
8. Marketing and customer outreach: Developing effective marketing strategies to create
awareness about the grid-connected PV system, educate potential customers about its
benefits, and drive adoption.

By addressing these challenges, capitalizing on additional opportunities, and executing

the crucial next steps, the project can be successfully implemented, resulting in the
deployment of an effective and efficient grid-connected PV system.
CONCLUSION
In conclusion, the study highlights the techno-economic feasibility of implementing a
grid-connected solar PV system in Jeddah, Saudi Arabia. The high solar radiation
potential and stationary nature of photovoltaic power generation make it a suitable
renewable energy solution. The technical analysis reveals the system's energy
production, capacity factor, and annual performance ratio, indicating satisfactory
performance.

From an economic standpoint, the system's levelized cost of electricity (LCOE) is

competitive with the electricity company tariff, and the estimated net present value
(NPV) shows positive returns over the system's lifetime. The payback period
demonstrates the profitability of the investment. Sensitivity analysis identifies two-axis
tracking systems as productive but economically impractical, while interest rates and
inflation rates within Saudi Arabia's range do not pose risks to the project's viability. The
adoption of time-of-use billing is recommended for significant

economic benefits and peak load demand reduction.

With the proposed system estimated to meet 86.4% of a typical flat's energy demand, it
showcases a promising solution for renewable energy generation. The study serves as a
valuable reference for similar solar energy projects, considering legislative and
economic variations in different countries. Future investigations should focus on the
dynamic variations of solar electric power generation costs to establish effective energy
management schemes and policies for sustainable energy production.
To move the proposed solution forward, it is recommended to prioritize the
implementation of grid-connected solar PV systems, taking advantage of the declining
installation costs. Additionally, policymakers should consider supporting and
incentivizing renewable energy projects, while stakeholders should collaborate to
optimize system configurations and financial options. By doing so, Saudi Arabia can
further advance its transition towards green and sustainable energy..