Smart Analytics for Assessing Economic Efficiency and Environmental Impact of Solar Energy Potential

Abstract

This paper presents a systematic assessment of the economic efficiency and environmental benefits of solar energy deployment in Region X using a multidisciplinary approach. The methodology integrates GIS-based resource assessment, performance modeling (SAM/PV*Sol), time-series analysis, and economic evaluation tools, including Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Environmental impacts were evaluated through Life Cycle Assessment (LCA). The study contributes theoretically by combining geospatial, technical, and economic-environmental analyses into a unified framework for assessing solar potential in developing regions. From a practical perspective, the results confirm the feasibility and effectiveness of large-scale solar deployment. GIS analysis shows that approximately 2,500 km² are suitable for solar installations, corresponding to a potential capacity of about 24.5 GW. Performance modeling indicates that advanced photovoltaic and hybrid systems achieve outputs of 200–250 kWh/m² annually, with low degradation rates (0.4–0.5% per year). Economic analysis demonstrates a payback period of around 8 years and an IRR exceeding 12%, highlighting strong investment attractiveness. LCA results indicate potential CO₂ emission reductions of up to 2.5 million tons per year. Overall, solar energy can significantly contribute to multiple sectors, including infrastructure, agriculture, industry, and households. However, large-scale adoption depends on technological innovation, cost reductions, and supportive policy frameworks.