Techno-economic analysis of local manufacturing of perovskite photovoltaic modules for electricity generation in Ethiopia
Year: 2025
Type: article
Abstract: • Perovskite solar panels manufactured locally in Ethiopia cost 0.29 $/Wp • The Minimum Sustainable Price calculated for perovskite panels is 0.38 $/Wp. • Techno-economic metrics reveal project viability with a payback period of 7–8 years. • Internal Rate of Return (IRR) exceeds the weighted average cost of capital. • Levelized Cost of Energy estimated at $0.019/kWh, below Ethiopia’s electricity tariff. Perovskite solar cells can be potential contenders for future photovoltaic technologies due to their high efficiency, affordability, and simple manufacturing process. This study focuses on the techno-economic analysis of local manufacturing of perovskite solar panels in Ethiopia. The total manufacturing costs were found to be $0.29 /wp or $/69.6/m 2 . The Minimum Sustainable Price was calculated to be $0.38 /wp or $91.2/m 2 . Using a Monte Carlo simulation, the techno-economic metrics such as Net Present Value, Pay Back Period, Rate of Return, Profitability Index, and Levelized Cost of Energy were evaluated to determine project viability. The analysis showed a positive Net Present Value, a Payback Period of 7 to 8 years, an Internal Rate of Return of about 12 % with its average rate of return greater than the weighted average cost of capital, and a profitability index of 1.22, indicating project viability. The levelized cost of energy was estimated to be $0.019/kWh, which is lower than the selling price of electricity by the Ethiopian electric power authority, suggesting economic viability.
Authors: Getnet M. Meheretu, Ababay Ketema Worku, Moges T. Yihunie, Richard K. Koech, Getasew A. Wubetu
Language: English
Subfield: Environmental Engineering
Field: Environmental Science
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $3,170
Funders: Bahir Dar University, Moi University
Award: G2677277395
OpenAlex ID: W7083026691