Techno-economic assessment of grid-connected photovoltaic systems for peak shaving in arid areas based on experimental data

Abstract

In recent years, grid-connected photovoltaic system (GCPVS) has been installed at a steady pace around the world due to its clean energy generation, simple operation, and low maintenance. This technology is also a convenient solution for peak shaving in residential and commercial buildings of arid areas with great air conditioning demand in the summer noon. Several supportive policies have been accordingly legalized by countries/regions to attract private and government-based stakeholders. This paper proposes a techno-economic assessment of GCPVS in arid areas from the peak shaving perspective. As a practical case, the effect of a commissioned 102 kW GCPVS on peak shaving of the Mashhad waste management organization building is assessed, exploiting high-resolution one-year recorded data. The results endorse that installed GCPVS shaves the peak demand of this commercial building in summer noon by 40–50% on average. An economic evaluation is also conducted; the outputs highlighted that this project is economically viable with a 43,671 € net present value (NPV) and 34.5% internal rate of return (IRR). It is finally recommended that such practical and reliable studies with a large range of applications provide valuable insights and recommendations to the policymakers to adopt a well-modified policy according to the local economic and solar potential.