Design and Techno-Economic Evaluation of a Solar Photovoltaic System for a Rice Mill Using HOMER Pro

This paper focuses on the design and evaluation of a solar photovoltaic (PV) system for a rice mill located in Vanike Tarar, Punjab. The main objective is to examine whether solar energy can serve as a practical alternative to grid electricity for industrial processing loads. The total electrical demand of the rice mill is estimated to be around 344 kWh/day, which corresponds to an annual consumption of approximately 121,760 kWh. The system is modeled in HOMER Pro using solar resource data specific to the site, with an average solar irradiance of 4.69 kWh/m2/day. Based on the optimization results, the selected configuration includes a 334 kW PV array, a 115 kW converter, and a battery storage system. The simulation shows that the PV system generates nearly 507,600 kWh/year, which is significantly higher than the required load and helps ensure continuous operation. From an economic point of view, the net present cost (NPC) of the system is estimated at Rs. 29.6 million, while the levelized cost of energy (LCOE) is approximately Rs. 18.80/kWh. Although the rice mill operates only for a limited period each year, electricity bills must still be paid throughout the year, resulting in an annual expense of about Rs. 1.765 million. The proposed system reduces reliance on grid electricity and avoids recurring charges such as fuel adjustments. However, due to the high initial investment, full cost recovery is not achieved within the project lifetime. Even so, the system offers long-term financial and environmental benefits. Overall, the findings suggest that a solar PV system can be a reliable and sustainable option for rice mill operations, especially in regions with strong solar potential.