Economic Feasibility Study for Renewable Energy Solutions

February 01, 2018 waterHQ Editorial Team 3 min read

Recently, the demand for electricity has increased and because of  the lack of its sources and the high cost of production by traditional methods, especially on fossil fuels, it is...

Recently, the demand for electricity has increased and because of  the lack of its sources and the high cost of production by traditional methods, especially on fossil fuels, it is necessary to find other sources for generating  electricity with less expenses and environmentally friendly. Solar energy is used perfectly in the fields of solar water heater and generating electricity. Because of the low costs of generating electricity, clean, environmentally friendly and reducing maintenance, solar energy is used in the remote areas and the areas which are far from the public electricity network. Generating electricity by solar energy is used for all economic sectors especially in the industrial and agricultural sectors.

Altawfeer is one of the first national companies in Syria who invests in the field of solar energy. The specialized engineering team of the company uses the best technology in alternative energy field. The company started supplying solar energy equipment for generating electricity in the agricultural sector since 2015. The company had installed more than 75 solar water pumping systems in agricultural lands. In this economic feasibility study, which is specialized in water pumping using solar energy, the company provides a simple example and information that every investor in the field of solar energy in the agricultural sector should take into consideration. Through this information the investors will know that the cost of a solar system to operate a 25 hp pump will be recovered in 5 years compared to the consumption of a generator of 30 KVA in 6 months per a year. If the solar system is used to pump water throughout the year, the cost will be recovered in less than 3 years. Solar energy is one of the available means which is used essentially in generating electricity for industrial, agricultural and domestic purposes. In all developed countries, governments need environmentally friendly sources for generating electricity. The current energy resources are considered to be depleted resources, as the consumptions increase while available reserves decrease. Diesel generating systems need more expenses on fuel and maintenance.

On the opposite, solar energy systems used for generating electricity do not require maintenance, suitable in remote areas, and suitable in areas where technicians are not available; it is also clean, environmentally friendly and has no waste. In the economic feasibility study for the project of operation a 25 hp solar water pumping system, a comparison will be done between the solar system and the electric generator.

Pros and Cons:

One of the most effective factors in determining the best option for operating a 25 hp pump is to show the pros and cons of each system as in the following table :

  1. first system: solar water pumping system
  2. second system: electric generator 30KVA consumption of 5.4 liters per hour for a 25 hp load - with a weatherproof seal.

Financial Feasibility:

The following table shows  the cost of  operation for 25 hp pump  with  simple comparison between  electric generator 30 KVA  and solar energy for 25 hp pump. The period of operation is for  6 hours from  09:30 to 15:30 

The electric generator costs USD16716 in 5 years without maintenance costs and with 6 months operation each year, while the cost of the solar system to operate a 25 hp pump is USD19580 for 25 years.

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