Video summary
NDC4 #Solar13: PV-powered Room Air Conditioning: Market trends and techno economic potential
Main summary
Key takeaways
Purpose & context
- The webinar was hosted by GIZ / C42 project and aligned with the GCI – Green Cooling Initiative.
- It presented an updated study (2025) on market trends and techno-economic potential for solar PV-powered room air conditioning (PV-AC).
- The modeling focus was a single split-type AC system up to 5 kW, for:
- Residential and small commercial use
- Three system cases were considered:
- Hybrid (grid-connected) PV + AC systems
- Off-grid PV + AC systems with battery storage
- An additional technical case: off-grid PV + AC using ice storage (economics not yet updated)
Market / strategic framing (demand & emissions drivers)
- AC demand is rising quickly due to population growth, urbanization, and climate change.
- Split AC units are projected to grow from ~850 million (earlier referenced baseline) to >3.7 billion by 2050.
- The implied strategy in the study is to improve “green cooling” economics and impact via a combined pathway:
- Solar PV + energy-efficient AC + climate-friendly natural refrigerants (e.g., R290 in the ice-storage concept)
Study update: what changed from 2022 → 2025
The 2025 update aimed to improve realism and cost assumptions:
- Country coverage: increased by +4 countries
- Added: Albania, Brazil, Tunisia, South Africa
- AC investment costs:
- Updated from a global constant (2022) to country-specific values
- PV technology mix:
- Updated PV modules from polycrystalline (2022) to monocrystalline dominance
- Updated economic/system inputs, including:
- Electricity prices
- Inflation rates
- PV CAPEX
- PV feed-in tariffs
- (plus other cost values used in simulations)
Business/technical methodology (simulation framework)
System options
- Hybrid grid-connected PV-AC
- PV + inverter supply; no battery
- Grid acts as backup when solar is unavailable
- Off-grid PV-AC
- No grid connection
- Battery storage included for night/cloudy periods
Building types
- Residential (smaller load)
- Small commercial (larger load)
Geography / location granularity
- For each country, the model used 3 locations based on GHI (Global Horizontal Irradiation):
- Minimum / average / maximum GHI within that country
- Total simulation scale:
- 2 system types × 2 building types × 3 locations × 17 countries = 204 runs
PV modeling assumptions
- Monocrystalline silicon PV
- Average global module efficiency: ~16.4%
- Module orientation: south (or north in southern hemisphere)
- Tilt: optimized by latitude
Economic evaluation metrics (core “playbook”)
Headline financial metrics
- LCOE / LCE (Levelized Cost of Electricity)
- Compares “cost to generate 1 kWh” with/without feed-in tariffs
- NPV (Net Present Value)
- Incorporates earnings (e.g., from feed-in tariffs) where applicable
- A higher NPV vs base case indicates the PV-driven system can outperform standard grid AC over its lifetime
Key economic assumptions mentioned
- Plant lifetime: 20 years
- Discount / interest rate: 5%
- OPEX: PV module operating expense = 1.5% of CAPEX per year
- CPI: country-specific
- Feed-in tariffs: country-specific where present
Base case for NPV comparisons
- Conventional grid-connected AC:
- R410A refrigerant
- Grid AC purchased and operated using grid electricity (no PV)
Interpretation rule and “plus” framework
- If the PV-driven system’s NPV beats the base case, PV AC is considered economically justified.
- Outcomes were summarized using a “plus” logic:
- 3 pluses: near zero lifetime cost
- 2 pluses: economically feasible (NPV higher than base case)
- 1 plus: sensitivity range (strongly depends on location/solar resource)
- No plus: not economically feasible
Key results (quantified business insights)
1) Hybrid PV-AC vs grid AC (financial advantage)
- For hybrid (grid-connected) PV-powered AC:
- 15 out of 17 countries show financial advantage
- Exceptions: Iran, Tunisia
- For small commercial systems:
- 16 out of 17 countries show advantage
- Exception: Iran
2) Off-grid PV-AC with batteries (feasibility is more limited)
- Off-grid PV-AC (battery-based):
- 10 out of 17 countries feasible
- Exceptions listed: China, India, Iran, (Sagal/Sa?), South Africa, Tunisia, Vietnam
- (The “Saga/Sa?” entry is slightly garbled in the source text.)
- For small commercial off-grid, feasibility is again reported as 10/17, with a slightly different exception set:
- Exceptions include: China, India, Iran, (Saga/S…), Thailand, Tunisia, Vietnam
3) Role of feed-in tariffs (illustrated with concrete country examples)
- Location matters within a country because of GHI variation:
- Example: Colombia
- Average location may look favorable
- But minimum-GHI location can be unfavorable
- Example: Colombia
- Feed-in tariffs can strongly improve PV economics:
- Ghana
- Without feed-in tariff: LCOE ≈ grid electricity cost → little advantage
- With feed-in tariff: LCOE reduced to ~zero
- Grenada
- After subtracting feed-in tariff value, negative LCOE can occur (described as being paid for excess PV export)
- Ghana
Ice storage alternative (technical case; economics not updated)
Why included
- Batteries may be economically prohibitive off-grid, so the study tested ice storage as a substitute.
Technical concept
- Off-grid PV powers an AC system modified to use natural refrigerant R290 (propane mentioned in the text).
- Excess PV electricity is used during daytime to freeze ice in a storage tank.
- At night:
- The system uses stored cold via a glycol-water secondary circuit to run the indoor unit.
Case study boundary conditions (South Africa)
- No grid connection
- Location coordinates: South Africa
- AC capacity: ~2.5 kW peak
- PV peak power: ~1.5 kW
- Ice tank: 216 kg water/ice
- Thermal storage: ~20 kWh
- Comfort/cooling start threshold: 21°C
- Hourly climate thresholding:
- AC operates when ambient > 21°C
- Resulting intensity:
- 3,863 hours/year (~161 days)
- Thermal cooling demand: ~5 MWh/year
Coverage result (Key KPI-style output)
- With ice storage + direct PV cooling:
- 92% of annual cooling load met
- Breakdown:
- 69% via direct PV operation
- 22% via ice storage nighttime operation
- 8% uncovered (ice tank empty / no sun)
Sensitivity analysis / targets
- To raise “solar fraction” (coverage):
- 100% solar fraction can be achieved by increasing ice tank size and/or adjusting comfort threshold
- Trade-offs expressed with “cooling threshold temperature”:
- Keep threshold at 21°C → requires ~0.5 tons of ice
- Reduce ice to ~86 kg → accept warmer operation (up to ~26°C threshold)
Unmodeled / limitations
- No detailed modeling of tank temperature stratification (energy-based ice freezing only).
- Economics for ice storage were not calculated yet in this update.
Actionable recommendations (implied by results)
- Prioritize hybrid systems where grid backup exists:
- Favorable economics in most modeled countries (15/17)
- Use feed-in tariffs where available to improve PV economics:
- Can move LCOE/NPV from marginal to strongly positive (examples: Ghana, Grenada)
- Treat geography as a design variable:
- Solar resource distribution within countries can change feasibility (example: Colombia)
- For off-grid projects, focus on constraints:
- Battery-driven off-grid economics feasible in only ~10/17 cases → require careful, country-specific techno-economic assessment
- Consider ice storage as an off-grid alternative to batteries:
- Demonstrated technically feasible coverage up to ~100% with appropriate tank sizing and comfort thresholds
Presenters / sources
- Claudia Alvarez — Head of the C42 project (opening remarks)
- Professor Paul Kumbach — Study author; Founder/owner of Soemle Consulting
- Professor Dr. Uli Jakob — Co-author (mentioned by Kumbach as co-author; honorary professor)
- Miland Des Sanaka — Facilitator / intern (context and agenda)
- Theresa Brunes — Technical assistance (facilitation support)
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