Techno-Economic Analysis of a 5 MWp Solar Photovoltaic System in the Philippines

Energy security is a very important requirement for economic growth and stability. Renewable energy (RE) growth is one of the key elements of this area. The utility-type or the large-scale use of solar photovoltaic (PV) panels to produce electricity is becoming one of the most cost-effective energy sources. Solar generation costs have declined over the past few years, driven by an explosion in PV cell output and production. The objective of this study was to present the viability - both the technical and the economic feasibility of a 5 MWp solar photovoltaic (PV) farm in a specific location in Butuan City, Philippines. This paper performed the technical and economic analysis based on present market conditions and the availability of local materials from solar panels to power inverters, the build-on-systems (BOS), and cost considerations in putting up the large-scale PV utility using the PVSyst Software as the simulation tool. For a 5 MWp system, the investment could reach close to 300 million pesos (or USD6.25M). However, the results of the simulations revealed very promising financial benefits over a long period or in the lifespan of the solar power farm. The payback period is at 4.23 years, the return of investments or the ROI is at 506.2%, and other economic indicators are all positives and great support for establishing the solar PV farm. Over the lifetime of the PV farm, a total of 109,828.4 tons of CO2 will be avoided using the solar farm project. The authors highly recommend the proposed solar farm project to be implemented based on the results of this study.