alternative energy for housing team 2 lindsey jantz – organizer/leader gerald spotts – techie...
TRANSCRIPT
Alternative Energy for Housing
Team 2• Lindsey Jantz – Organizer/Leader• Gerald Spotts – Techie• Johnny Lo – Summarizer
EGR 403 – 03Fall 2007
Overview
• Background Description
• Scenarios
• Factors (environment, cost, power, efficiency)
• Analysis Approach (Present Worth)
• Sensitivity Analysis
• Conclusion
Background
• Living in a world with increasing and alarming global warming concerns, people are going green.
• Solar Energy: photovoltaic cells in panels convert the sun’s rays into useful energy
• Solar panels can get expensive– May take many years before the investment pays off
Scenarios
• Family of 4 living in a 2200 sq-ft home in Orange County area.
• Conventional Energy vs. Solar Energy– 3 different sized solar systems
• Is initial investment for solar energy a better option than standard electricity?
–For period of 10, 20, 30 years
Fixed Parameters
• Fixed average power usage (kWh) for both cases
• Analysis periods of 10, 20, and 30 years
• Solar System life of 30 years
Conventional Energy
• Sum of average monthly energy costs
• Rate according to SCE
• Increasing rate of 2.8% per year
• Considers decreasing consumption– For example, family members move out
Solar System
• 3 Systems:– Small (45% of energy is solar)– Medium (65% of energy is solar)– Large (100% solar energy)
• Each system is financed with a 10 yr loan with a 7% interest rate
• Remaining cost is based on conventional energy costs
Irvine, CA
Present Worth Analysis
• Cash flows:– Conventional energy– Solar: Monthly loan payments + additional
energy costs
• NPW (NPV function) used for each analysis period
Conclusion
• Conventional energy is the better alternative for a 10 and 20-year period
• System 2 (combination) paid off and actually was the better alternative after the 30 year period– 65% solar and 35% conventional energy
Other Considerations
• Solar is environmentally friendly
• Better benefits depending on location
• Many state incentives– CA State Cash Rebate
• if system is connected to utility grid
Resources
• U.S. Department of Energy: – Information on incentives, etc.
http://www1.eere.energy.gov/solar/
• Heritage Solar:– Installs solar system in Southern CA
– Can get estimates for your home online
http://www.heritagesolar.com
• http://science.howstuffworks.com/solar-cell.htm