Energy–economic–environmental (3E) optimization of a hybrid system for a residential building in a developing country: a case of Nigeria

Increased energy demand, coupled with heavy dependence on fossil fuels, poses critical challenges for climate stability and sustainable development worldwide. Consequently, the use of renewable energy has become a key strategy in energy transition policy to mitigate climate change, reduce dependence on fossil fuels, and enhance reliable access to electricity globally. This study compares grid-tied and standalone hybrid renewable energy systems composed of a diesel generator, photovoltaic (PV) arrays, batteries, and grid interconnection for a Nigerian residential building. The findings showed that the optimal solution integrates 4 kW PV with battery storage and grid connection. This option produced the lowest net present cost (NPC) of $8712 and levelized cost of energy (LCOE) of $0.068/kWh, outperforming the grid-tied PV/diesel system (LCOE: $0.185/kWh; NPC: $15,088.56) and the standalone PV/diesel/battery system (LCOE: $0.412/kWh; NPC: $24,197.46). Moreover, the yearly mean proportion of renewable energy penetration is 68% for the photovoltaic/battery/grid setup, 41.4% for the photovoltaic/diesel/battery/grid, and 74.4% for the photovoltaic/diesel/battery configurations. Furthermore, the sensitivity analysis revealed that the system’s techno-economic performance is strongly affected by environmental factors such as weather conditions; market variables, including fuel price, electricity sell-back tariff, inflation, and discount rates; and technological parameters such as PV and battery costs and lifespans and inverter efficiency.