Economic Evaluation of Household Biogas Unit Production in Supporting Public Policy on Accelerating Renewable Energy Development

Abstract

This study explores the economic feasibility and policy relevance of household biogas production as a means to accelerate the transition toward renewable energy and sustainable development. Using an engineering economics approach, the analysis includes cost structures, break-even analysis, return on investment, and capital recovery period. Data were drawn from case studies and market-based estimates of component and operational costs. The findings reveal that despite relatively high operational expenses, production efficiency and consistent market demand ensure long-term economic sustainability. Beyond financial performance, household biogas systems enhance local energy security, reduce environmental degradation, and create community-based employment opportunities. These outcomes provide a strong empirical foundation for evidence-based policymaking, particularly in promoting decentralized energy systems and cross-sector collaboration. The initiative directly supports key Sustainable Development Goals, including clean and affordable energy, inclusive economic growth, and climate action, positioning household biogas as both a profitable and socially impactful renewable energy solution.