Of the available RETs, photovoltaics have been promoted to extend the electric grid as technology
matures and manufacturing production economies of scale emerge, however PV (particular residential
PV) is poised to assume a more prominent role in the future electrical generation portfolio. Earlier
studies on PV systems have been in terms of modeling, system sizing and its performance, while studies
based on the balance electricity price for integrating PV in a smart grid system is limited. Tools are
available for PV system design and sizing [13,14]. These are designed to address specific objectives,
such as, design based on low life cycle cost or according to the expected function of the system. Earlier
experiences also indicate that there are problems arising from the system sizing and PV contribution to
the load [13]. Several obstacles have been identified related to the techniques on operation of the system
[15]. One is due to nonlinear component characteristic [16] and choosing the proper operation strategy
[17]. The balance electricity price for integrating PV in a smart grid system dealing with the reality of
using PV smart grid systems is not available. In order to address these challenges, it is necessary to study
the use of PV smart grid system for sustainable development.