A PV system is usually installed for 2 main reasons; For rational people who care about their pockets, an On Grid PV system is a very profitable investment which yields returns up to 17% for 25 years. For others who care about quality of life, an Off Grid / Hybrid PV system assures a peace of mind provided by reliable energy source.
On Grid Systems – for all loads
- All electricity generated from the system is sold to the government at a fixed tariff for 25 years.
- Ideal for companies and investors with large lands. Return on Investment (ROI) for Stations >200KW is currently at 16%. Smaller stations have lower returns.
- All electricity generated by the PV panels is consumed by the Loads (i.e. lights, computers, heaters).
- Self Consumption is feasible only when the cost of electricity is higher than the FiT you can receive by selling to the National Grid.I.e. if the price of electricity in 2019 is expected to be EGP 1.00, then it is better to install a self consumption system than an FiT system that pays EGP 0.97 for 25 years.According to the Ministry of Elect., prices of electricity is increasing steadily until 2019, and subsidies is likely to be completely removed by 2025.
- Just like self consumption but with battery backup when electricity cuts out
- We only recommend to use batteries when it is a necessity. Examples would be a company backing up its lighting system and servers. While backing up an entire factory with batteries is neither financially feasible, nor environmentally friendly. It is however feasible in countries where prices of Diesel are $0.80/litre (vs $0.2 in Egypt)
Off Grid Systems – for small loads
- ideal for small homes that have no electricity.
- All electricity generated by the PV panels is either used for the loads or saved in the batteries to be consumed by the Loads during the night.
- Ideal for places with light loads, since batteries alone cost between 20% to 80% of the CAPEX, and its lifespan varies from 2 to 3 years depending on whether it is used daily or just for emergencies.
off Grid Systems – for pumps and big loads
- Completely replaces diesel generators
- payback period is 3 years, then free electricity for at least 22 years.
TYPE B: Diesel Hybrid
- Hybrid systems work especially well with large industrial complexes and/or factories that rely solely on Diesel Generators and operate during the day and night. Ideally, loads should start at 0.5MW.
- All electricity generated by the PV panels is utilized during the day to decrease diesel generator consumption.
- This is the more profitable option than stand alone diesel generators, especially since the expected cost of fuel by 2019 will reach EGP 4/Liter.
- Solar or PV power shows payback of ~ 4 years (24% Internal Rate of Return)