Alternative Energy Application The cost of a single solar panel lies in the rang

Question

Alternative Energy Application

The cost of a single solar panel lies in the range of $200 to $400, depending on the power output of the panel and the material it is made from. Before investing in equipping your home with solar power, it is wise to see whether the savings in the cost of electricity would justify the amount you would invest in the panels.

(a)  

Suppose your monthly electrical usage equals the national U.S. household average of 948 kWh. Assuming an average of five hours of sunlight per day and a 30-day month, calculate how many panels you would need to provide that amount of energy and what the total cost would be for each of the following two types of panels: (i) 140 W panel that costs $210; (ii) 240 W panel that costs $260. What is your conclusion?

(b)  

Suppose you decide to install the 240W panels, and the average cost of electricity purchased over the next three years is $0.15/kWh. You can sell back "extra" electricity (the amount of electricity which the solar panels produce over and above your monthly requirement) to the utility for $0.15/kWh. What would the total cost "savings" be for the utility "sell back" over that 3-year period? What more would you need to know to determine whether the investment in the solar panels would pay off?

(c)  

What might motivate someone to decide to install the solar panels even if the calculation of Part b shows that the installation would not be cost-effective?

Explanation / Answer

a)
i)
number of 140 W pannel = total power required / power supplied by each panel
= 948000 w/(140*30*5w)
= 45
cost = $210 * 45 = $9450

ii)
number of 240 w panel = 948000/(240*30*5)
= 26
cost = $260*26
= $ 6760

I will use 240w panel

b)
In 3 years amount of electricity used = 948 kwh * 12 * 3 = 34128 kwh
cost for this electricity = $0.15 * 34128 = $5119.2
We have saved this money

We need to know for how many years solar panel will work before replacement

c)
solar panel may work more than 3 years and in that case it will be cost effective

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