Economic and Environmental Evaluation of Photovoltaic (solar) Systems: Case Study ofSouth Eastern Iran

There is increased interest in renewable sources of energy due to the finite and poluting nature of fossil fuels. Solar energy is one of the most important types of renewable energy sources and is condidered an important alternative to fossil fuels. This study used life-cycle cost analysis and environmental assessment of photovoltaic systems in the five provinces of South Khorasan, Sistan and Baluchestan, Kerman, Yazd and Hormozgan, for both residential and commercial uses. The economic evaluation is done under two scenarios. Under the first scenario all costs are born by consumers, while the second scenario supposes that 50 percent of primary costs are covered by the government and for the rest, the consuner is provided with ten year loans at two percent interest. The results of this study suggest that the use of photovoltaic systems to generate electricity under the first scenario (without government support) has is not economically viable, but with government support (scenario II), the project becomes viable.