Techno–Economic Feasibility Analysis of a Solar Photovoltaic System for Optimized Power Distribution Network

This study presents a comprehensive techno-economic feasibility analysis of a solar photovoltaic (PV) system integrated into a 7-bus power distribution network. By employing an improved analytical technique, the research strategically determines the optimal placement and sizing of distributed generation (DG) units to minimize power losses and enhance voltage profiles. The analysis focuses on a single-location deployment of a solar PV system with a capacity of 7678 kW, positioned at bus-2. The study compares the system's economic performance with conventional grid-supplied power over a projected 25-year lifespan, considering variables such as fixed charges, variable energy charges, taxes, and a 10% annual inflation rate. Initial power losses without DG integration amount to 128.05 kW, which are reduced to 55.00 kW after incorporating the PV system—a 57.05% reduction. The system operates for 8 hours daily, with an alternative scenario of 5 hours to account for practical limitations. Transmission losses of 10% are considered, emphasizing the system's ability to meet local demand while reducing dependency on centralized grids. The economic analysis reveals significant savings in operational costs, supported by a tariff rate of $ 0.037/kWh. The findings indicate that the optimized solar PV system not only enhances technical performance by reducing power losses and improving voltage profiles but also proves to be a cost-effective and sustainable alternative to conventional power sources. This work demonstrates the potential of well-planned solar PV systems in addressing the dual challenges of energy efficiency and economic sustainability in modern power networks.