Economic Suitability Analysis of Solar Photovoltaic Modules and Energy Storage Systems Installation in Residential Units Group with Optimization Method

Abstract

This article presents an economic feasibility analysis of installing solar photovoltaic (PV) modules and energy storage systems for a residential complex of 11 buildings with 220 rooms. In total. The analysis employed a mathematical model and the Generalized Reduced Gradient (GRG) method to solve nonlinear optimization problems, by finding the minimum total project cost under specified conditions. The analysis reveals that installing a standalone 10 kW solar PV module results in the lowest total project cost and the optimal production capacity. Installing solar PV modules combin with an energy storage system is found to be economically unfeasible due to the high recent cost per unit of energy storage systems. Energy storage is applied for using the 100% solar energy efficiency by storing excess produced energy over the demand.The optimal product of the solar PV module and the energy storage system are 11 kW and 8 kWh, respectively. The installation of solar PV module has a payback period of 2 years and 9 months, which reduce the consumption of grid electricity by 23,158 kWh per year, decrease the electricity costs by 99,579 Baht per year, and diminish the CO₂ emissions by 27,790 kilograms per year. While the solar PV module with an energy storage system, has the payback period in 4 years, with the reduction of grid electricity consumption by 25,689 kWh per year and the reduction of CO₂ emissions by 30,827 kilograms per year. These findings are crucial for decision-making and policy formulation regarding renewable energy adoption as an alternative to fossil fuels. The key contribution of this study is the methodology for optimization using an objective function derived from relevant variables.