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    Tutorial Economic Analysis

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    Samundeswaran Satiwasilan
    This document provides examples of economic analyses related to solar energy installations. It calculates the annual payment for a solar system over 15 years at 8% interest. It also finds the present value of a $1000 payment in 2020 with a 7% discount rate. Additionally, it determines the payback period and grid parity of a RM 18,000 solar PV system providing 11 kWh per day over 25 years. Finally, it calculates the annual savings and maximum investment for an RM 3 m2 solar water heater that could be paid back within 8 years at 5% interest.

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    Tutorial Economic Analysis

    Uploaded by

    Samundeswaran Satiwasilan
    29 views2 pages
    This document provides examples of economic analyses related to solar energy installations. It calculates the annual payment for a solar system over 15 years at 8% interest. It also finds the present value of a $1000 payment in 2020 with a 7% discount rate. Additionally, it determines the payback period and grid parity of a RM 18,000 solar PV system providing 11 kWh per day over 25 years. Finally, it calculates the annual savings and maximum investment for an RM 3 m2 solar water heater that could be paid back within 8 years at 5% interest.

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    Tutorial Economic Analysis (1)

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    This document provides examples of economic analyses related to solar energy installations. It calculates the annual payment for a solar system over 15 years at 8% interest. It also finds the present value of a $1000 payment in 2020 with a 7% discount rate. Additionally, it determines the payback period and grid parity of a RM 18,000 solar PV system providing 11 kWh per day over 25 years. Finally, it calculates the annual savings and maximum investment for an RM 3 m2 solar water heater that could be paid back within 8 years at 5% interest.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    29 views2 pages

    Tutorial Economic Analysis

    Uploaded by

    Samundeswaran Satiwasilan
    This document provides examples of economic analyses related to solar energy installations. It calculates the annual payment for a solar system over 15 years at 8% interest. It also finds the present value of a $1000 payment in 2020 with a 7% discount rate. Additionally, it determines the payback period and grid parity of a RM 18,000 solar PV system providing 11 kWh per day over 25 years. Finally, it calculates the annual savings and maximum investment for an RM 3 m2 solar water heater that could be paid back within 8 years at 5% interest.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Tutorial 6 Economic Analysis

    1. If the initial extra cost of a solar system is $5,000, what is the annual payment
    if the interest rate is 8% and the mortgage term is 15 years? ($584 /year)

    2. What is the present value of a $1,000 payment received in Year 2020 if we are
    now in Year 2013 and the discount rate is 7%? ($ 622.75)

    3. What is the present value in constant dollars of the $1,000 payment per year
    from Year 2013 to Year 2020 in No.2 if the inflation rate is 4% per year and
    discount rate is 7%? ($6257.82)

    4. (a) An owner of a double storey house considers a retrofit


    installation of a solar photovoltaic system on the roof with the total
    expenses of RM 18,000.00. Under the existing climatic conditions, the
    photovoltaic system can supply 11 kWh of electricity per day for 25
    years. Assume that the photovoltaic system performance does not
    degrade over the lifespan.

    (i) If the tariff of electricity is RM 0.30 per kWh, calculate the


    annual saving from the installation of the photovoltaic system.
    (RM 1204.5)

    (ii) Determine the number of years to repay the loan by using the
    yearly saving from the electricity bill provided that the interest
    rate is 6 % and the fuel inflation rate is 4 %. (17.8
    years)

    (iii) Justify whether the above system could reach grid parity.
    (The system has reached grid parity as the return of all the investment is less
    than the lifetime of the PV system. It means from year 17.8 to 25, the further
    saving of electricity is the bonus or sales from the system.)

    5. (a) A residential house located at Alor Setar is considering a


    retrofit installation of a solar water heater with total collective area of 3
    m2. Under the existing climatic conditions, the annual average solar
    irradiance is 650 Wm–2 for 5 hours per day throughout 365 days per
    year.

    (i) If the solar water heater can achieve thermal efficiency of 95


    %, calculate annual saving in the present value of RM provided
    that the electricity cost is RM 0.30 per kWh. (RM
    1014.24)

    (ii) If the owner can make a loan for the solar water heater at a rate
    of 5% per year and he wants his investment to be paid back
    within 8 years, what is the allowable maximum investment for
    the solar water heater? Assume that the expected increase of
    electricity price is 3 % per year.
    (The owner can pay RM 7448.40 or less for the retrofit installation)

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