Solar Power by CBECL: Generator vs Solar ROI Comparison - Bangladesh Industrial Power Model

Bangladesh Industrial Power Assessment: Generator vs Solar PV

Levelized Cost of Energy (LCOE), Total Cost of Ownership (TCO) & Payback Analysis

Bangladesh Industrial Energy Model

Generator vs. Solar Power ROI Calculator

Evaluate the Total Cost of Ownership (TCO), LCOE, and payback of traditional Diesel/Gas Generators compared to Rooftop Solar PV Systems under Bangladesh industrial conditions.

System Configuration

Target System Capacity 500 kW / kWp

Equivalent power output baseline for both Generator & Solar PV

Generator Running Hours / Day 6 Hours/day

Assumed grid load-shedding compensation or baseline operation

Thermal Generator Type

Diesel Gen ৳108-115 / Liter

Gas Gen ৳30.00 / m³

Diesel Fuel Price (BDT/Liter) ৳110.00

Annual Fuel Price Hike 8.0% / yr

Solar CAPEX ৳55,000

BDT per kWp Turnkey

Gen CAPEX ৳18,000

BDT per kW Capacity

Timeline Horizon 5 Years 10 Years 15 Years 20 Years 25 Years

Discount Rate (WACC) 8.0% p.a. 10.0% p.a. 12.0% p.a. 14.0% p.a.

Executive Insight BD Industrial Standard

• Generators feature lower initial CAPEX but suffer continuous, compounding OPEX due to high fuel prices and heavy maintenance.
• Solar PV Systems require upfront capital but generate electricity at a fraction of thermal generation costs with zero fuel dependency.

Generator LCOE

৳ 32.40 /kWh

Thermal power cost

Solar LCOE

৳ 3.85 /kWh

88% cheaper

Solar Payback

3.2 Years

Discounted breakeven

Net Solar Savings

৳ 12.8 Cr

vs Generator lifetime cost

Solar CAPEX ৳275.0 Lac Upfront Turnkey PV

Gen CAPEX ৳90.0 Lac Initial Genset Purchase

10-Yr Gen OPEX (Fuel) ৳11.4 Cr Fuel & Overhauling

CO2 Avoided / Year 510 Tons 22,950 Trees

Chart 1: Cumulative Cost of Ownership (TCO) Trajectory

CAPEX + Compounding Fuel/O&M expenditure over timeline (in BDT Crore)

Breakeven Year: 3.2

Chart 2: CAPEX vs 10-Year OPEX Breakdown (BDT Lac)

Chart 3: Effective Cost per kWh

Solar Cost Savings: ৳28.55 / kWh

Financial Schedule & Cumulative Cost Comparison

Year-by-year cumulative expenditure for Generator vs Solar PV System (in BDT Lacs)

Evaluation Timeline: 20 Years

Year	Gen Fuel Price	Gen Annual OPEX	Gen Cumulative TCO	Solar Annual OPEX	Solar Cumulative TCO	Net Solar Savings (৳ Lac)

Strategic Energy Summary

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Bangladesh Industrial Energy Model | Assumptions: Diesel generator consumption ~0.28 L/kWh; Gas generator consumption ~0.35 m³/kWh; Solar specific yield ~1,380 kWh/kWp/yr; Annual solar degradation ~0.7% p.a.