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Several countries have set goals to achieve carbon neutrality by 2060, including Saudi Arabia which aims to produce half of its energy from renewable energy sources by 2030. These goals greatly impact the environment by ensuring less pollution, better air quality, and a better environment for current and future generations. This paper aims to investigate the economic aspect of having 50% of Saudi Arabia's energy come from renewable energy sources, using the city of Ha'il as the focus of a small-scale project. The payback period, profit, and reduced carbon dioxide (CO 2 ) emissions of the 50% renewable energy project in the city of Ha'il are calculated. Installation, annual operation, and maintenance costs are considered in addition to assuming current energy prices while calculating the project's cash inflow. The discount rate is applied to cash inflow as well as operation and maintenance costs. In addition, taking photovoltaic (PV) system degradation into account will lead to a more accurate and realistic analysis. The results show that with a 1% annual degradation rate of the PV system and a 0% interest rate, the payback period of the 50% renewable energy project is 9.5 years, and it is expected to bring a profit of ∃1,221,363,138 throughout its 25-year lifetime. However, with the same 1% annual degradation rate of the PV system and a 6% interest rate, the payback period of the 50% renewable energy project is 14.9 years, and the projected profit stands at ∃237,671,410 over its 25-year lifetime.
Hamoud Alafnan (Mon,) studied this question.