A CAPEX (Capital Expenditure) model for a Net Energy Metering (NEM) system in Bangladesh:

1. System Design and Sizing

  • Capacity: Determine the size of the system (kW or MW) based on energy demand and available space (e.g., rooftop or land area).

  • Usage Patterns: Consider energy consumption trends to size the system optimally for NEM.

2. Components and Costs

The CAPEX breakdown for an NEM system typically includes:

a. Solar PV Modules

  • Costs depend on type (monocrystalline/polycrystalline) and efficiency.

  • Approximate price: $0.20–$0.40 per watt.

b. Inverter

  • Hybrid/grid-tied inverter required for NEM.

  • Approximate price: $0.10–$0.20 per watt.

c. Mounting Structures

  • Materials and design based on installation type (rooftop/ground-mounted).

  • Approximate price: $50–$200 per kW.

d. Balance of System (BoS)

  • Includes cabling, junction boxes, connectors, etc.

  • Approximate cost: 10–15% of the total system cost.

e. Energy Meter

  • Bi-directional energy meters compliant with NEM regulations.

f. Installation and Labor

  • Skilled labor for design, installation, and commissioning.

  • Approximate cost: 5–10% of the total system cost.

3. Additional Costs

  • Permit and Licensing: Costs for acquiring necessary approvals from local authorities and utilities.

  • Energy Storage (Optional): Battery storage if energy independence or backup is required.

  • Land Costs: For ground-mounted systems, land acquisition adds to CAPEX.

4. Financial Incentives and Policy

Bangladesh offers various incentives for renewable energy:

  • Net Metering Policy: Excess energy exported to the grid earns credit on electricity bills.

  • Tax Incentives: Reduced VAT and duties on renewable energy components.

  • Grants/Subsidies: Support from government programs or international funding agencies.

5. Example CAPEX Estimation

For a 50-kW rooftop solar NEM system in Bangladesh:

  • Solar Modules (50 kW x $0.30/watt): $15,000

  • Inverters (50 kW x $0.15/watt): $7,500

  • Mounting Structures: $5,000

  • BoS: $3,000

  • Installation and Labor: $3,000

  • Permits and Miscellaneous: $1,000
    Total Estimated CAPEX: $34,500

6. Payback and ROI

  • Calculate payback period by comparing CAPEX to annual savings from reduced electricity bills and NEM credits.

  • In Bangladesh, typical payback periods for solar NEM systems range from 5 to 8 years, with a system lifespan of 20+ years.

Conclusion

A well-structured CAPEX model ensures financial viability while maximizing the benefits of Bangladesh’s NEM policy. For a more detailed, project-specific assessment, partner with experts familiar with local regulations and market dynamics.