Assessment of The Long-Term Financial Benefits of Installing Solar Systems Versus Relying on Conventional Power Supplies

Overview & Synopsis

This study evaluates the cost-benefit of installing a solar power system in the Department of lndustriM and Production Engineering. Nnamdi Azikiwe University. Awka. Nigeria. With frequent power outages and the high cost of fuel-based generators. the department faces increasing energy-related expenses and operational challenges. The research garnered data of the current power sources in the department (Grid electricity and gmaator). and the possible cost of solar power installation. The cost evaluation was done using the Net Present Venue (NPV) and Future Value fomtulars. for aprojected period of 25-years. Acomparative analysis ofthe three options was done. results show that the solar system, with a total cost of N29.33 million, is far more sustainable compared to grid electricity (NI02.19 million) and generators (NZ40.98 million). The analysis contirrns that solar power provides significant long-temt financial savings. greater reliability. and environmental benefits. Ir is therefore recommended as the optimal energy solution for the department, serving troth academic and practical sustainability goals.