Financial feasibility of solar PV lanterns for households of a remote village cluster without access to electricity

Abstract

In this study, the financial feasibility assessment of adopting state-of-the-art designs of solar PV lanterns by the households of a remote village cluster in the state of Rajasthan, India has been undertaken. LED-based solar PV lanterns are expected to save kerosene and meet their lighting energy demand. Based on a survey of the village cluster, the household level requirement of solar PV lanterns (three numbers each with a 3-W LED lamp), annual kerosene saving (approximately 100 litres) and the values of several measures of financial performance include discounted payback period (merely 4.7 years), net present value (Rs. 11263/-) and benefit to cost ratio (2.37) has been estimated. From a financial perspective an investment in the solar PV lanterns by a household appears to be quite attractive and may be explored by energy service companies. The results of detailed calculation undertaken have been presented in the paper and discussed.