Techno-Economic Evaluation of Residential PV Systems in Oil/Gas-Rich Economies: A Case Study of Qatar & Texas

Qatar and Texas both have relatively high annual solar irradiance; thus, they have high solar energy potential. Both have oil-rich economies with low electrical utility prices, which render photovoltaic (PV) systems less financially attractive to consumers. However, a strong case can be made for for PV in oil-rich economies. First, energy generation from solar PV allows for higher profit gains of precious export commodities (oil and/or gas) instead of using them locally. Second, sunny weather conditions in most oil-rich countries, like Qatar, allow for more sustained and predictable PV generation with fewer interruptions. This paper presents a techno-economic study that explores the economic benefits associated with implementing a grid-connected rooftop photovoltaic and energy storage system (PV-ESS) in oil-based countries. Two case studies were used as examples of implementation in different parts of the world: Texas, USA, and Doha, Qatar. In both cases, a long-term simulation of a house with an installed PV-ESS system is used to determine the economic feasibility of residential PV. Factors like generation and load profiles, cost of grid consumption, cost of materials, and house size were considered in this study. Based on the study, house owners in Texas can breakeven their PV-ESS system cost, while in Qatar, this is more challenging. In addition to the techno-economic study results in this paper, the barriers-to-entry of solar PV in oil-rich countries are explored and discussed.