IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v35y2024i4p1936-1966.html

Techno-economic feasibility analysis of grid-connected residential PV systems in Algeria

Author

Listed:
  • Ghania Mohand Kaci
  • Achour Mahrane
  • Kaci Ghedamsi
  • Madjid Chikh

Abstract

Small-scale photovoltaic (PV) power systems have been proven to be successful in generating electricity, conserving fossil fuels, and reducing greenhouse gas emissions in the residential sector, which is one of the largest consumers of energy. In Algeria, to reduce energy consumption in this sector, the authorities are considering implementing a policy that would encourage grid-connected residential PV systems. This paper presents a techno-economic assessment of grid-connected residential PV systems in four climate zones in Algeria. This work was performed using HOMER software for two different PV system configurations, grid/PV and grid/PV/battery. The technical performances of the considered systems were evaluated through the assessment of the self-consumption and self-sufficiency, while the net present value (NPV), internal rate of return (IRR), profitability index (PI), and discounted payback period (DPBP) were used to determine their feasibility. A sensitivity analysis was carried out to evaluate the effects of feed-in tariff (FiT), battery costs, and PV array capacity on the profitability of the systems. The results revealed that the grid/PV systems are technically and economically feasible in all of the four climate zones. For the grid/PV/battery systems, the grant of battery costs and the development of a regional FiT system are recommended. This article provides a tool for policymakers to assess the technical and financial performance of residential solar PV systems to develop adequate policy supports and tariff structures for Algeria.

Suggested Citation

  • Ghania Mohand Kaci & Achour Mahrane & Kaci Ghedamsi & Madjid Chikh, 2024. "Techno-economic feasibility analysis of grid-connected residential PV systems in Algeria," Energy & Environment, , vol. 35(4), pages 1936-1966, June.
    • Handle: RePEc:sae:engenv:v:35:y:2024:i:4:p:1936-1966
    DOI: 10.1177/0958305X221146953
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X221146953
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X221146953?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jinwoo Bae & Soojung Lee & Heetae Kim, 2021. "Comparative study on the economic feasibility of nanogrid and microgrid electrification: The case of Jeju Island, South Korea," Energy & Environment, , vol. 32(1), pages 168-188, February.
    2. Esplin, Ryan & Nelson, Tim, 2022. "Redirecting solar feed in tariffs to residential battery storage: Would it be worth it?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 373-389.
    3. Numbi, B.P. & Malinga, S.J., 2017. "Optimal energy cost and economic analysis of a residential grid-interactive solar PV system- case of eThekwini municipality in South Africa," Applied Energy, Elsevier, vol. 186(P1), pages 28-45.
    4. Antonio Gagliano & Francesco Nocera & Giuseppe Tina, 2020. "Performances and economic analysis of small photovoltaic–electricity energy storage system for residential applications," Energy & Environment, , vol. 31(1), pages 155-175, February.
    5. Nacer, T. & Hamidat, A. & Nadjemi, O. & Bey, M., 2016. "Feasibility study of grid connected photovoltaic system in family farms for electricity generation in rural areas," Renewable Energy, Elsevier, vol. 96(PA), pages 305-318.
    6. Buckman, Greg & Sibley, Jon & Ward, Megan, 2019. "The large-scale feed-in tariff reverse auction scheme in the Australian Capital Territory 2012, to 2016," Renewable Energy, Elsevier, vol. 132(C), pages 176-185.
    7. Ramirez Camargo, Luis & Nitsch, Felix & Gruber, Katharina & Dorner, Wolfgang, 2018. "Electricity self-sufficiency of single-family houses in Germany and the Czech Republic," Applied Energy, Elsevier, vol. 228(C), pages 902-915.
    8. Li, Jiaming, 2019. "Optimal sizing of grid-connected photovoltaic battery systems for residential houses in Australia," Renewable Energy, Elsevier, vol. 136(C), pages 1245-1254.
    9. Das, Barun K. & Hoque, Najmul & Mandal, Soumya & Pal, Tapas Kumar & Raihan, Md Abu, 2017. "A techno-economic feasibility of a stand-alone hybrid power generation for remote area application in Bangladesh," Energy, Elsevier, vol. 134(C), pages 775-788.
    10. Bayer, Benjamin & Matschoss, Patrick & Thomas, Heiko & Marian, Adela, 2018. "The German experience with integrating photovoltaic systems into the low-voltage grids," Renewable Energy, Elsevier, vol. 119(C), pages 129-141.
    11. Lau, K.Y. & Muhamad, N.A. & Arief, Y.Z. & Tan, C.W. & Yatim, A.H.M., 2016. "Grid-connected photovoltaic systems for Malaysian residential sector: Effects of component costs, feed-in tariffs, and carbon taxes," Energy, Elsevier, vol. 102(C), pages 65-82.
    12. Pi-Chuan Sun & Hsueh-Mei Wang & Hsien-Long Huang & Chien-Wei Ho, 2020. "Consumer attitude and purchase intention toward rooftop photovoltaic installation: The roles of personal trait, psychological benefit, and government incentives," Energy & Environment, , vol. 31(1), pages 21-39, February.
    13. Li, Yanxue & Gao, Weijun & Ruan, Yingjun, 2018. "Performance investigation of grid-connected residential PV-battery system focusing on enhancing self-consumption and peak shaving in Kyushu, Japan," Renewable Energy, Elsevier, vol. 127(C), pages 514-523.
    14. Aghamolaei, Reihaneh & Shamsi, Mohammad Haris & O’Donnell, James, 2020. "Feasibility analysis of community-based PV systems for residential districts: A comparison of on-site centralized and distributed PV installations," Renewable Energy, Elsevier, vol. 157(C), pages 793-808.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wesonga, Racheal & Tutesigensi, Apollo & Moodley, Krisen, 2025. "Advancing net zero carbon construction: A techno-economic and environmental analysis of onsite microgrids and prosumer energy adoption," Applied Energy, Elsevier, vol. 398(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castillo-Calzadilla, T. & Cuesta, M.A. & Olivares-Rodriguez, C. & Macarulla, A.M. & Legarda, J. & Borges, C.E., 2022. "Is it feasible a massive deployment of low voltage direct current microgrids renewable-based? A technical and social sight," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    2. Rehman, Shafiqur & Ahmed, M.A. & Mohamed, Mohand H. & Al-Sulaiman, Fahad A., 2017. "Feasibility study of the grid connected 10MW installed capacity PV power plants in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 319-329.
    3. Nina Munzke & Felix Büchle & Anna Smith & Marc Hiller, 2021. "Influence of Efficiency, Aging and Charging Strategy on the Economic Viability and Dimensioning of Photovoltaic Home Storage Systems," Energies, MDPI, vol. 14(22), pages 1-46, November.
    4. Norouzi, F. & Shekhar, Aditya & Hoppe, T. & Bauer, P., 2025. "Analysing the impact of the different pricing policies on PV-battery systems: A Dutch case study of a residential microgrid," Energy Policy, Elsevier, vol. 204(C).
    5. Corneliu Marinescu, 2022. "Progress in the Development and Implementation of Residential EV Charging Stations Based on Renewable Energy Sources," Energies, MDPI, vol. 16(1), pages 1-31, December.
    6. Sanni, Shereefdeen Oladapo & Oricha, Joseph Yakubu & Oyewole, Taoheed Oluwafemi & Bawonda, Femi Ikotoni, 2021. "Analysis of backup power supply for unreliable grid using hybrid solar PV/diesel/biogas system," Energy, Elsevier, vol. 227(C).
    7. Pinto, G.X.A. & Naspolini, H.F. & Rüther, R., 2024. "Assessing the economic viability of BESS in distributed PV generation on public buildings in Brazil: A 2030 outlook," Renewable Energy, Elsevier, vol. 225(C).
    8. Sadat, Seyyed Ali & Pearce, Joshua M., 2025. "Techno-economic evaluation of electricity pricing structures on photovoltaic and photovoltaic-battery hybrid systems in Canada," Renewable Energy, Elsevier, vol. 242(C).
    9. Abraham Alem Kebede & Maitane Berecibar & Thierry Coosemans & Maarten Messagie & Towfik Jemal & Henok Ayele Behabtu & Joeri Van Mierlo, 2020. "A Techno-Economic Optimization and Performance Assessment of a 10 kW P Photovoltaic Grid-Connected System," Sustainability, MDPI, vol. 12(18), pages 1-29, September.
    10. Kotowicz, Janusz & Uchman, Wojciech, 2021. "Analysis of the integrated energy system in residential scale: Photovoltaics, micro-cogeneration and electrical energy storage," Energy, Elsevier, vol. 227(C).
    11. Abhi Chatterjee & Daniel Burmester & Alan Brent & Ramesh Rayudu, 2019. "Research Insights and Knowledge Headways for Developing Remote, Off-Grid Microgrids in Developing Countries," Energies, MDPI, vol. 12(10), pages 1-19, May.
    12. Yuehong Lu & Zafar A. Khan & Manuel S. Alvarez-Alvarado & Yang Zhang & Zhijia Huang & Muhammad Imran, 2020. "A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources," Sustainability, MDPI, vol. 12(12), pages 1-31, June.
    13. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(C).
    14. Nikolas G. Chatzigeorgiou & Spyros Theocharides & George Makrides & George E. Georghiou, 2023. "Evaluating the Techno-Economic Effect of Pricing and Consumption Parameters on the Power-to-Energy Ratio for Sizing Photovoltaic-Battery Systems: An Assessment of Prosumers in the Mediterranean Area," Energies, MDPI, vol. 16(10), pages 1-27, May.
    15. Duman, A. Can & Güler, Önder, 2020. "Economic analysis of grid-connected residential rooftop PV systems in Turkey," Renewable Energy, Elsevier, vol. 148(C), pages 697-711.
    16. Li, Chong & Zhou, Dequn & Zheng, Yuan, 2018. "Techno-economic comparative study of grid-connected PV power systems in five climate zones, China," Energy, Elsevier, vol. 165(PB), pages 1352-1369.
    17. Tomasz Trawiński & Janusz Kotowicz, 2025. "Photovoltaic Power System with Electrochemical and Hydrogen Storage for Energy Independence in Student Dormitories," Energies, MDPI, vol. 18(7), pages 1-19, March.
    18. Mariz B. Arias & Sungwoo Bae, 2020. "Design Models for Power Flow Management of a Grid-Connected Solar Photovoltaic System with Energy Storage System," Energies, MDPI, vol. 13(9), pages 1-14, April.
    19. Abdul K Hamid & Nsilulu T Mbungu & A. Elnady & Ramesh C Bansal & Ali A Ismail & Mohammad A AlShabi, 2023. "A systematic review of grid-connected photovoltaic and photovoltaic/thermal systems: Benefits, challenges and mitigation," Energy & Environment, , vol. 34(7), pages 2775-2814, November.
    20. Idiano D'Adamo & Alessandro Dell'Aguzzo & Marco Pruckner, 2024. "Residential photovoltaic and energy storage systems for sustainable development: An economic analysis applied to incentive mechanisms," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 84-100, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:engenv:v:35:y:2024:i:4:p:1936-1966. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.