Decentralised Solar Photovoltaic Energy in Ghana: A Multimethod Examination of Financial Viability, Barriers to Adoption, and Impact on Sustainable Development

Decentralised solar photovoltaic (PV) has emerged as a promising technology to address energy challenges in Ghana, with a specific focus on enhancing energy security and stimulating sustainable development. The main objective of this study was to delve into the economic viability of decentralised solar PV and examine its potential contributions towards achieving sustainable development in Ghana. To this end, the study was grounded in established theories that provided the basis for making logical arguments and drawing inferences from research findings. Specifically, technology adoption theories such as diffusion of innovation (DOI), technology adoption model, technology-organisation-environment model, institutional theory, and stakeholder theory were engaged in this study. These theories were complemented by the corporate finance theory which seeks to explain how corporate consumers apply capital budgeting principles in ascertaining the economic feasibility of decentralised solar PV systems. A multi-method approach including a literature review, a case study, a Delphi survey, and semi-structured interviews was implemented to achieve the study’s main and auxiliary objectives. This approach ensured that numerical and textual data were gathered and analysed. Through a purposive sampling technique, 19 experts participated in a Delphi survey while 5 industry experts participated in semi-structured interviews. In terms of results, the economic viability of decentralised solar PV was assessed through a case study of a 360kWp monocrystalline system on the premises of HPW Fresh and Dry Ltd. Discounted cash flow and Monte Carlo simulation techniques showed that the solar PV system is economically viable with a probability of success of 98.71%. In terms of barriers, 19 industry experts participated in a Delphi survey whereas consensus was defined as at least 75% of experts agreeing to a given statement. Through a fuzzy synthetic evaluation, experts ranked financial and economic barriers as the biggest impediment to the uptake of decentralised solar PV in Ghana, followed by institutional and political, socio-cultural, and technical barriers. Experts also indicated a strong correlation between decentralised solar PV and sustainable development. From the technical experts’ perspectives, mitigation strategies to the identified barriers include effective implementation of existing policies, reforms of fiscal incentives, mandatory solar targets for public institutions, training, awareness creation campaigns, and collaboration between industry and academia. The study contributes to the literature on several aspects of decentralised solar PV by addressing contextual and methodological limitations and filling knowledge gaps identified in the existing literature. Its practical implications include the generation of insights and actionable recommendations that can contribute to unlocking the industry in the medium term. While the study offers valuable practical insights, a few limitations must be acknowledged. Firstly, the study specifically examines a commercial and industrial (C&I) installation, limiting the generalisability of the results to households. Secondly, the study employed capital budgeting techniques complemented by Monte Carlo simulation to assess the economic viability of decentralised solar PV in Ghana. Although this method is robust, alternative approaches such as decoupled net present value (NPV) provide a more detailed financial analysis by isolating and evaluating the impact of individual risks or uncertainties on NPV. While these limitations could not affect the validity of the findings, it is important to acknowledge them and provide context to guide future research efforts.

Name dc:type.qualificationname

PhD

Level dc:type.qualificationlevel

Doctoral

Grantor dc:publisher.institution

De Montfort University

Year dc:date.issued

2024

Author dc:creator

• Kombate, Marindame

Licence

• https://dora.dmu.ac.uk/bitstreams/3d0eb4e7-a6d3-4342-a0ed-613daff98c9b/download