Economic impact of captive solar technology and an ideal grid penetration level

Abstract

Since the 2008 energy crisis, the national utility has been under stress to meet the country's electrical demand. Moreover, the costs of building new conventional power stations and the operation and maintenance costs of existing ones are taking a toll on the economy. The utility has hence resorted to hiking electricity tariffs. This combination of rising electricity prices and decreasing costs of photovoltaic (PV) technology have hence led a number of households to cover part of their electricity demand by self-produced captive solar PV technology. Reliable supply of energy is the backbone of a growing economy, hence the integration of captive solar PV technology, and self-generation seems to be growing on the back of an impending energy crisis. Although the integration of cleaner energy sources is good, uncontrolled or over penetration of captive solar technology could become a threat to the utility.