I’m working on a economics project and need support to help me learn.
Imagine you work for a consulting firm and your firm is retained to develop a grid tie solar system that can meet the average energy need (100% +/- 5%) of a typical house in Connecticut. The customer expects a recommendation on whether to proceed with the installation of such a system or do nothing.
The house annual consumption is provided in Table 1. The house consumes 25% of its energy during peak hours. The total cost per kwh (cost of energy consume and cost of transmission) is given (or can be computed) using the example bill in file name ENGR-290-s2021-solar-project-2.pdf. Typical solar panel has a specific efficiency (21%) and a life span, 25 years. The efficiency of the panel degrades at a rate of 1% per year. The amount of energy solar panel generated, is directly proportional to its efficiency and the amount of sunlight it is exposed to. Sunlight exposure varies from state to state. This information can be inferred using the example provided (see ENGR-290-s2021-solar-project-1.pdf). The cost of such system is the total of the cost of the panels, electronic equipment’s (inverters, new meter etc.) and installation. According to statistics, the total cost for this type of system, is usually 4 times the cost of the panels. The project is financed using a loan with a rate of 2.99%APR compound monthly over 10 years.