Techno-economic Feasibility Analysis of Solar Photovoltaic System for Single Households in Peri-urban Areas Kumasi, Ghana

The rapid growth of new settlements at the outskirts of the cities in developing countries compels the residents of these areas to rely heavily on unreliable electricity supply and unsafe drinking water sources, and often pay higher prices than the approved utility rates. This paper used Simple Payback Analysis to assess the technical and economic feasibility of solar photovoltaic system for electricity supply without and with water supply system for single households in newly developing high-income peri-urban areas in developing countries using Kumasi, Ghana as case study. The study revealed that the 6 kW off-grid solar photovoltaic system designed for electricity supply cost US$7950.00 with payback period of 15 years at US$0.116/kWh. The addition of a 600 litres capacity water supply to the electricity supply system increased the cost to US$10420.00 but reduced the payback period to 13 years at US$0.116/kWh of electricity and US$0.001154/L of water. Thus, the system meant to supply both electricity and water to the household would pay for itself before the project life of 25 years. Hence, solar PV system is technically and economically feasible for electricity and water supply for single households in newly developing high-income peri-urban areas in Ghana and other developing countries with similar socio-economic and climatic conditions.