Net-metering and Feed-in-Tariff policies for the optimum billing scheme for future industrial PV systems in Bangladesh

Abstract

In this paper, the economic sustainability of net billing and feed-in-tariff (all energy buy/sell) method is analyzed in comparison with the current net-metering for the industrial PV systems in Bangladesh. Three billing methods are compared according to plant capacity factor, excess energy transfer, levelized cost of energy (LCOE), net present value (NPV), payback period, and profitability index (PI) for the analysis of optimum billing scheme. The highest plant capacity factor and minimum LCOE are found for the large PV system in Chattogram. Out of three methods, all energy buy/sell exhibits the NPV which is USD 5.85 million and PI of 2.54 at the minimum 4.9 years discounted payback time for the large PV system in Chattogram. The sensitivity analysis of solar irradiation at six other regional areas, bill escalation rate, and discount factor is performed to observe the impact on annual energy production and NPV. For both systems, all three assessed methods are found economically feasible, but the net metering is attained as the least profitable in comparison with net billing and all energy buy/sell schemes. From various analyses, it is found that the adaption of these two schemes in the present guideline can enhance industrial PV production in Bangladesh.