Techno-Economic Analysis of Solar PV–Battery-Based Microgrids for Rural Electrification

Abstract

Access to reliable and affordable electricity remains a persistent challenge in rural and remote regions, where grid extension is often technically difficult and economically unviable due to low population density, scattered habitation, and difficult terrain. Solar photovoltaic (PV)–battery-based microgrids have emerged as a promising decentralized alternative for achieving sustainable and reliable rural electrification. This study presents a techno-economic analysis of a standalone solar PV–battery microgrid designed to meet the electricity demand of a representative rural community. The proposed framework integrates load profiling, PV array and battery bank sizing, and economic evaluation using key indicators such as Net Present Cost (NPC), Levelized Cost of Energy (LCOE), simple payback period, and internal rate of return (IRR). A representative case configuration, developed using assumed load and resource data consistent with values reported in the literature, is analyzed to assess technical feasibility and financial viability, and a sensitivity analysis is carried out to examine the influence of solar irradiance, battery cost, discount rate, and load growth on system economics. The results indicate that solar PV–battery microgrids can provide a technically reliable and increasingly cost-competitive solution for rural electrification, particularly as battery costs continue to decline, although high upfront capital cost and periodic battery replacement remain the dominant economic constraints. The study concludes with recommendations for policy support, system hybridization, and future research directions to enhance the scalability and long-term viability of PV–battery microgrids in rural areas.