Cost-competitiveness of distributed grid-connected solar photovoltaics in Ghana: case study of a 4 kWp polycrystalline system

Driven by improvements in solar photovoltaic (PV) technology, policy initiatives and module cost reduction, electricity from solar PV is becoming increasingly cost-competitive with conventional energy systems. In this paper, an economic assessment is conducted on a 4.05 kWp, polycrystalline silicon photovoltaic system installed at the College of Engineering of the Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, located at latitude 6°40′N and longitude 1°37′W, and elevation of 250 m, with a hot and humid climatic condition. The concept of grid-parity, which compares the levelized cost of electricity (LCOE) from solar PV to the retail price of electricity is used in this assessment. The results show, that, at installed cost of €3567/kW and an LCOE of €0.28/kWh, the non-residential category of electricity consumers requires investment support/subsidy of up to 22.9% to achieve parity. Solar PV is already competitive for non-residential customers consuming above 600 kWh in a month, without any support. Residential electricity consumers require investment support of 40.6–92.5% to attain parity with grid electricity, while special load tariff customers (> 100 kVA maximum demand) require between 4 and 50.5% subsidy on capital investment to reach parity. This paper concludes by recommending a two-pronged approach (incentive- and legislation-based) for promoting distributed grid-connected solar PV energy system in Ghana.