Solar energy is becoming one of the cheapest forms of electricity generation worldwide; the global average levelized cost of electricity (LCOE) of utility scale solar PV has fallen dramatically in the last decade and reached as low as 0.0255USD/KWh in Jordan as of 2019. With the increase adaptation of solar energy to create electricity, the options of generation become more vivid and important to address: building large solar farms in remote areas or using small and medium scale solar arrays for harvesting solar energy. Decentralized systems can bring about economic benefits to both the community -indirectly- and to users -directly- the paper is written to explain the methodology of decentralized PV systems and discuss their economic benefits such as less (or no) transmission and transformer losses, feed-in tariffs, less maintenance costs, better space and land utilization, and increased resiliency of the grid due to these systems. This paper aims to prove theoretically that when all the costs are accounted for, decentralized PV systems are comparable in efficiency with remote large scale PV systems and more cost effective.
Kameel Kishek is an electrical power and energy engineering student who served as the president of the Association of Energy Engineers (AEE) student chapter at his university, Princess Sumaya University for Technology (PSUT) in his 4th academic year and is expected to graduate in the academic year 2019/2020. His current academic interests are focused on renewable energy and power systems, and is completing his first research paper for the World Energy Engineering Congress 2019 on the topic of “Economic Advantages of Decentralized Solar PV systems” hoping to encourage and shed light on the benefits of solar energy.