Feasibility of Solar Energy Integration versus Diesel Generators for the University: A Comprehensive Approach Considering Energy, Exergy, and Economics

The depletion of fuel resources, increased greenhouse gas (GHG) emissions, and energy limitations highlight the need for renewable energy. Solar energy is a cost-effective choice globally, including in Iran, due to its abundance. This paper presents the design and economic analysis of an on-grid solar system at the University of Abhar, Iran. Installing photovoltaic (PV) systems on unused university rooftops can enhance electricity reliability, reduce load shedding, and offer flexibility during peak demand, making it a valuable investment. The system was simulated in PVsyst, evaluating energy losses, output power, and power injection into the grid. Energy and exergy efficiencies of the solar system were assessed, and an economic comparison with a diesel generator (DG) system was conducted. The solar system showed an annual output of 411.5 MWh, decreasing to 355 MWh/year over 25 years, and could reduce CO2 emissions by 193 tons annually. The energy and exergy efficiencies of the selected panels were 17.02% and 19.63%, respectively. Economically, the solar system's cost of energy production was approximately $0.008 /kWh, compared to $0.01 /kWh for the DG system. The solar system also achieved a higher IRR of 26.4% and a faster DPP of 9.2 years. In conclusion, PV systems offer lower GHG emissions and better cost efficiency compared to diesel generators.