Abstract
This study provides a comprehensive techno-economic analysis of the barriers, opportunities, and feasibility of adopting captive solar photovoltaic (PV) systems in Tanzania’s industrial manufacturing sector. Despite Tanzania’s high solar irradiation potential, averaging 4.5 to 7.0 kWh/m²/day, the uptake of captive solar systems remains minimal, with only 2.3 percent of surveyed firms currently using solar energy, primarily for non-productive uses such as security lighting. Using a mixed-methods approach, data were collected from 43 manufacturing firms in the Dar es Salaam and Pwani regions through structured questionnaires, supported by PVSyst simulations and financial modelling to assess two system configurations: grid-connected PV systems without battery storage and hybrid PV systems with battery storage. The results demonstrate strong financial viability for the battery-free configuration, which achieved a Levelized Cost of Electricity (LCOE) of 6.39 US¢/kWh, a payback period of 7 years, and a Net Present Value (NPV) of USD 700,019. In contrast, the battery-inclusive system yielded a higher LCOE of 16.12 US¢/kWh, an extended payback period of 23 years, and a total project cost NPV of USD 1.77 million. Sensitivity analysis confirmed project viability across discount rates ranging from 7% to 21%. The system achieved a 23.6% PV penetration relative to the facility’s total electricity demand and is expected to avoid between 3,476 and 8,603 tons of CO₂ annually, depending on the baseline energy source displaced (grid or diesel). Key barriers identified include high upfront capital costs, limited technical expertise, and regulatory uncertainty. However, significant opportunities exist in training, policy reforms, and financial innovation. The study recommends targeted incentives, net metering implementation, and public-private partnerships to accelerate the adoption of industrial-scale captive solar systems, contributing to Tanzania’s transition toward a resilient, low-carbon energy future.
Recommended Citation
Uhale, E., & Ayeng'o, S. P. (2025). Techno-Economic Analysis of Captive Solar Power Systems for Tanzania’s Manufacturing Sector: Barriers, Opportunities, and Feasibility. Tanzania Journal of Engineering and Technology, 44(4), 179-196. https://doi.org/10.65085/2619-8789.1075
Publisher Name
University of Dar es Salaam