Cost Benefit Analysis of Solar Panel System in Residential Buildings in Sokoto State, Nigeria

Abstract In Nigeria, the current state of inadequate power supply necessitates the search for alternative energy sources. The urgency lies in finding a solution that is both clean and renewable, promoting green and sustainable development. This study focuses on evaluating the cost benefit of solar energy for residential buildings in Sokoto State, Nigeria. To assess the feasibility of solar energy, global solar radiation, clearness index, and sunshine hours based on analyses of weather conditions in Sokoto State were considered in the analyses. Notably, August exhibited the lowest solar radiation levels. Quantitative analysis was conducted to ascertain the viability of solar panel systems as an energy solution for residential buildings in Sokoto State. Over a projected 25-year lifespan of the solar panels, the cumulative output production is estimated at 54.54 terra-watt hours. The return on investment (ROI) is calculated at an impressive 209%, indicating a payback period of just 9-10 years. Additionally, compared to other renewable energy sources, solar energy in residential buildings in Sokoto State stands to save more money, with a revenue of $3.55 billion. These findings highlight the significant potential and economic benefits of adopting solar power in Sokoto State. By embracing renewable energy solutions, Nigeria can address its pressing power supply challenges while fostering a sustainable and environmentally friendly future.