Techno-Economic Comparison of Solar and Geothermal Energy-based Systems: A Case Study in Western Sichuan

The application of renewable energy can effectively alleviate energy shortages and environmental pollution. However, electric heating and traditional combustion heating are still widely used in western Sichuan. This paper analyzes a techno-economic comparison between a solar-Air energy heating system (System 1) and a geothermal-Air energy heating system (System 2) designed for Litang. First, the distribution of renewable energy in Litang is analyzed. The system devices and operating modes of the two systems are described. According to the system design results, the paper compares the initial cost, operation cost, and net present value (NPV) of the two systems. The results show that both schemes are feasible from the perspective of technical analysis. While System 2 has lower initial investment, operation cost and higher NPV, which meets the actual needs of the project and local development planning. Using geothermal resources for urban central heating can achieve good energy saving and emission reduction benefits, and provide a reference for improving the proportion of local renewable energy use and optimizing the energy structure.