Life cycle costs (LCC) of solar photovoltaic (PV) systems and petrol-powered generators for off-grid electricity generation in Nigerian households and small business outfits was evaluated in this study using deterministic LCC and Monte Carlo Simulation approach. Results revealed 91% savings in the LCC of PV systems as compared with petrol generators of 5kVA and 3kVA respectively, after ten (10) years, with a breakeven period of two (2) years. Further analysis also revealed that the levelized energy cost of PV systems is 80% lesser compared to petrol generators. Sensitivity analysis of the LCC factors indicates that the initial capital cost and replacement cost contributes 83.4% and 16.5% respectively to the LCC of PV systems, while operation and maintenance costs, fuel price and fuel consumption rate per hour contributes 61.9%, 20% and 18% respectively to the LCC of petrol generators. Thus, PV systems are economically viable than petrol-powered generators for small scale off-grid electricity generation in Nigeria and it is therefore recommended that where the initial capital cost is available, solar PV systems should be adopted for off-grid electricity generation and local production of PV components should be encouraged as this will greatly reduce the initial capital cost of solar PV systems.
