Economic Feasibility of Energy Storage for Solar Energy at Universiti Teknologi Mara Kampus Jengka

Abstract

Public universities in Malaysia have increasingly adopted solar photovoltaic systems as part of their sustainability and cost-saving strategies. At Universiti Teknologi MARA Kampus Jengka, the rooftop solar installation contributes to lower electricity bills but operates without any form of energy storage. This limits its ability to manage fluctuations in energy supply and demand, especially during periods when solar generation is low. Without storage, excess electricity is exported to the grid while the campus still relies on grid electricity at night or during cloudy days. This raises an important question: can the addition of energy storage improve the economic performance of the system? This study conducts an economic feasibility assessment using actual electricity consumption data, solar production patterns, energy storage cost trends, and tariff structures. Economic indicators such as return on investment, internal rate of return, and payback period are calculated to evaluate the impact of energy storage. The results show that integrating a properly sized energy storage system leads to higher cost savings compared to operating the solar system alone. The findings suggest that energy storage is a viable strategy for improving energy self-sufficiency and reducing long-term operational costs for the university.