Economic Analyses of Integrating Solar Inverter into the Existing Energy Systems in Nigerian Healthcare Centers

Abstract

Reliable electricity supply is crucial towards efficient healthcare delivery in a developing country like Nigeria, where national grid faces constant outages. Many healthcare centers depend on diesel generators, meaning high operational costs and environmental impacts. This study investigates the economic feasibility of integrating solar photovoltaic (PV) systems with existing energy infrastructure at a healthcare facility in Nigeria. Data were collected from a healthcare facility among others, and, using HOMER software; three different system configurations were simulated over a 25-year project lifetime, with focus on incorporating solar inverter system, alongside existing grid supply and generator. Results showed the optimal system configuration to be the one comprising of solar inverter system alongside the existing grid and diesel generator. This system has a significantly lower net present cost (NPC) of $382,263, compared to the base case scenario of $1,663,158, which relies totally on grid electricity and the diesel generator. The levelized cost of energy (LCOE) for the hybrid system is $0.139/kWh, also much lower than base case LCOE of $0.642/kWh. While initial investment cost for this system posed a challenge, the study demonstrated a payback period of approximately 4.8 years, with return on investment of 16%, and an internal rate of return (20.3%). The findings demonstrated the economic viability and potential benefits of integrating solar PV systems in the healthcare sector, as energy costs are lowered due to reduced billing and maintenance costs. This has significant potential for long-term cost savings, in addition to elimination of havoc-causing outrages. Furthermore, reduced dependence on diesel generator implies lowered greenhouse gases emission, which is beneficial to patients, staff and visitors. Government incentives or other financing mechanisms are potential solutions to high installation costs. This research is recommended for implementation in places like Nigeria, as it serves as a guide towards sustainable energy for improved healthcare delivery.