Cost Benefit Analysis of Solar Power Electricity Consumption in Katugasthota Municipal Area

Abstract

Introduction :

Solar powered systems are becoming more prevalent in many countries and it is one of the most important renewable energy sources that has been gaining increased attention in recent years (Khaligh, 2010). Solar energy is used worldwide and is increasingly popular for generating electricity or heating and desalinating water. Most countries have decided to aid consumers choosing to invest in solar in the hopes of supporting the “green” or sustainability movement. Solar energy is clean and free of emissions, which is beneficial for the environment, as it does not produce pollutants or by-products harmful to nature (Robert et al., 2010).

Sri Lanka should secure its energy future by focusing on the development and adoption of indigenous, renewable sources of energy to meet this growing demand and reduce the economic burden of imports. Accordingly, this study investigates the effectiveness of solar power electricity investment through a cost-benefit analysis and the calculation of two measurements of net present values (NPV) and internal rate of return (IRR) using data gathered from 100 households in the Katugasthota municipal area.