Carbon Footprints, Cost-Benefit, and Social Acceptability of Solar Photovoltaic Systems : An Analysis of Household Electricity Consumption in Islamabad (P-0786) (MFN 4870)

Abstract

Pakistan is an unfortunate victim of a major energy crisis and climate change, parallel to which it is also facing soaring prices of fossil fuels. It is becoming increasingly difficult for the country to meet the growing demand of electricity. This scenario provides the basis for research and development of strategy to implement alternative green energy generating technologies. The objectives of this study are: (i) to provide a comparison of a household’s Carbon Footprint from electricity consumption by grid electricity versus solar photovoltaic - grid electricity mix; (ii) to carry out a cost-benefit analysis of installation of a solar photovoltaic system of a selected household in Islamabad; and (iii) to examine social acceptability of solar technologies in Islamabad. To deduce the carbon footprint and cost-benefit analysis, data have been retrieved from a selected household in Islamabad. These data included electricity bills, and information regarding cost of setup and maintenance of the solar photovoltaic system installed in the household. To workout the social acceptability of solar technologies in Islamabad, a specially designed questionnaire based survey was carried out in various residential sectors of the city. The analysis shows that there is 71.49 percent decline in carbon footprint at the consumption endpoint. Thus, installation of solar technology for electricity generation proves effective in reduction of carbon emissions in comparison with solely using grid electricity. Furthermore, the investment proves to be financially viable, as both NPV and IRR are positive. The Cost Payback Time for this investment is 10.47 years, which is considered as a long period. Although, 87 percent of total sampled households want to improve the environment of the city and wish to convert to solar technologies, yet they are apprehensive in making investment in solar technology due to financial and operational complexity. Thesis concludes by offering policy recommendations to counter identified hurdles.