Performance and economic viability of the PV system in different climatic zones of Nigeria

Abstract

This study analyzed the effect of climatic variation on PV systems' performance and economic viability in four climatic zones of Nigeria (warm desert, warm semi-arid, tropical savanna, and monsoon climate). Performance ratio was found to be high in monsoon and tropical savanna climate due to the influence of cool-moist air from the ocean, low temperature, and increased cloud cover in the region. Meanwhile, the least performance ratio was noticed in the warm desert and warm semi-arid climate due to the dusty wind from the Sahara desert, relatively high temperature, and low precipitation in the region. In order to assess the cost-effectiveness and profitability of the solar project in Nigeria, the Levelized cost of electricity (LCOE), net present value (NPV), internal rate of return (IRR), and payback period (PP) were employed. The average LCOE across the climatic zones is 0.21 $/kWh, which is lower compared to the 0.25 $/kWh grid tariff. The average NPV and IRR are found to be $31,164 and 22%, respectively, making the project economically feasible. However, the payback period was found to be ranging from 3.7 to 5.2 years. Finally, the analysis has proven that solar PV technology is economically viable and profitable in Nigeria.