Project Benefit cost analysis of Solar Energy at Household Level

The Sun, our nearest star is the source of energy for life on Earth. It is about 150 million km away, a distance which sunlight covers in 8 minutes. The energy output, solar constant is about 3.8 X 10^33 ergs / sec. within forty minutes of the sun, shining on the Earth, the Sun will have given off as much energy as the entire world population will use in one year. Earth’s inhabitants utilize and harness only about one percent of this energy. The basic energy source for the Sun is nuclear fusion, which uses the high temperatures and densities to fuse hydrogen, and produces energy and creates helium as a byproduct. The sun has been producing its thermal and radiant energy since the known past and it has enough hydrogen to continue producing for another hundred billion years. The sun is stable and it emits just the right amount of energy. For good reason, it has been also called as ‘Power House’.

Energy needs are increasing today, world is facing energy crisis with rapid industrialization and energy consumption growth rate is also very fast. This problem requires attention seriously both in developing and under developing countries. To maintain standard of living and comfort 10KW per person required in developed countries. In Europe it is 5KW per person and in developing countries it is 0.5 per person. The countries poor in energy are not in good position. Different energy resources are available but solar energy is more powerful, clean and safe energy source.

Pakistan is facing the problem of energy deficit. For rapid and sustainable development environmental friendly energy sources are needed. Geographically Pakistan lies in the Sunny Belt and is lucky to have long sunshine hours and high insulation levels and it is located such that it takes advantage of solar energy technologies. Pakistan is building solar power plants in its all provinces.  The first solar power on-grid power plant in Islamabad was inaugurated on May 29, 2012.

The economics of solar electricity” that the benefits and costs of increasing solar electricity depend on the scale of the increase and on the time frame over which it occurs. Short run analyses depend on the cost effectiveness of incremental increases in solar capacity. Variability of solar system adds value if its power occurs at high demand times and displaces relatively carbon intensive generation. Medium run analyses consider the implications of non-incremental changes in solar capacity. The cost of each installation may fall through experience effects. In the Long run analyses consider the role of solar in reaching 21th century carbon targets. Contribution of solar system depends on the representation of grid integration costs, on the potential for technological advances and on the availability of other low carbon technologies.

The sun is gas ball made of lot of hydrogen and helium gas and every day the sun sends out a lot of energy called solar energy. The whole world used one second of that energy. Solar energy travels at a speed of 186,000 miles per second. Solar energy is very useful in every field of life. It is considered a renewable energy source. Today, the use of solar energy increase day by day to heat buildings and water to generate electricity.

In last decade or so Pakistan has become an energy deficit country, the current energy crises has put adverse effect on our socio-economic fabric. There is sufficient gap persist in demand & supply of electricity in the system even the shortfall in the peak summer time become wider and reaches at record of 5000 MW as the mercury goes upward. The main consumer of electricity in Pakistan can be bifurcated in three sectors (1) Industrial (2) Domestic (3) Agriculture.