Analytical Design and Hybrid Techno-Economic Assessment of Grid-Connected PV System for Sustainable Development

Renewable energy sources can be of significant help to rural communities with inadequate electricity access. This study presents a comprehensive techno-economic assessment of a 500 kWp solar Photovoltaic (PV) energy system designed for Ibadan, Nigeria. A novel hybrid modeling framework was developed in which technical performance analysis was employed using PVSyst, whereas economic and optimization analysis was carried out using HOMER. Simulation outputs from PVSyst were integrated as inputs into HOMER, enabling a more accurate and consistent cross-platform assessment. Nigeria’s enduring energy crisis, marked by persistent grid unreliability and limited electricity access, necessitates need for exploration of sustainable alternatives. Among these, solar photovoltaic (PV) technology offers significant promise given the country’s abundant solar irradiation. The proposed system was evaluated using meteorological and load demand data. PVSyst simulations projected an annual energy yield of 714,188 kWh, with a 25-year lifespan yielding a performance ratio between 77% and 78%, demonstrating high operational efficiency. Complementary HOMER Pro analysis revealed a competitive levelized cost of energy (LCOE) of USD 0.079/kWh—substantially lower than the baseline grid-only cost of USD 0.724/kWh, and a Net Present Cost (NPC) of USD 6.1 million, reflecting considerable long-term financial savings. Furthermore, the system achieved compelling environmental outcomes, including an annual reduction of approximately 160,508 kg of CO2 emissions. Sensitivity analysis indicated that increasing the feed-in tariff (FiT) from USD 0.10 to USD 0.20/kWh improved the project’s financial viability, shortening payback periods to just 5.2 years and enhancing return on investment. Overall, the findings highlight the technical robustness, economic competitiveness, and environmental significance of deploying solar-based energy solutions, while reinforcing the urgent need for supportive energy policies to incentivize large-scale adoption.