Browsing by Author "Ntsatsi, Mathatela"

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    Economic feasibility of PV Net metering for Maseru South West (MASOWE) residential sector
    (National University of Lesotho, 2024) Ntsatsi, Mathatela; Taele, Molibeli; Kao, Moruti
    Net metering is a well-known mechanism that credits the prosumer for the surplus energy transferred from the solar power self-production of their consumption to the main utility grid. Therefore, this study investigates the technical and economic feasibility of net metering in Lesotho to alleviate the energy supply shortage and meet the demand. Electricity supply of 77 MW (hydro, solar and generator generation) remains a significant challenge for the government of Lesotho in fulfilling its top priority to meet the demand of 170 MW. For this reason, it is important to consider strategies, like net metering, to promote renewable energy to meet the energy demand. The study performed the technical and financial analysis for the Maseru South West (MASOWE) residential Net Metering in Lesotho to get a clear picture of technical and economic cost-benefit analysis to inform the policy direction. The study reveals that net metering is viable for the MASOWE residential sector for implementation. The type of net metering recommended for MASOWE households is energy credit net metering under restricted limitations and standards. This type of net metering provides net balance resolution where prosumer compensation is through the reduction of electricity billing. The five scenarios that have been investigated show that solar Photovoltaic (PV) hybrid systems with doubledsized solar power are most viable for net metering. The system consisting of a 2 kW solar PV and a 2 kW inverter seems to be the most promising configuration. The system load factor is 34%; the Net Present Cost (NPC) is $3,838.88; the initial capital cost is $1,553.00; the operation and maintenance cost is $96.09/yr; and the levelised cost of energy (LCOE) is $0.0282/kWh. In Lesotho, this LCOE is less than the $0.13/kWh of the Grid tariff. Again, $0.0282/kWh LCOE is far less than the $0.1/kWh average South African Development Community (SADC) LCOE projection of 2019. In addition, the system is economically viable and attractive, with an Internal Rate of Return (IRR) of 27%, a Return on Investment of 22%, and the shortest payback period of slightly over 3.7 years. The system’s avoided energy cost of $0.0102/kWh makes net metering more attractive for households. However, there is a need to encourage and facilitate the participation of female entrepreneurs and experts in the net metering system.