EGR 403 Team Project Proposal

1
Alternative Energy for Housing

• Team 2
• Lindsey Jantz Organizer/Leader
• Gerald Spotts Techie
• Johnny Lo Summarizer

EGR 403 03 Fall 2007
2
Overview

• Background Description
• Scenarios
• Factors (environment, cost, power, efficiency)
• Analysis Approach (Present Worth)
• Sensitivity Analysis
• Conclusion

3
Background

• Living in a world with increasing and alarming
  global warming concerns, people are going green.
• Solar Energy photovoltaic cells in panels
  convert the suns rays into useful energy
• Solar panels can get expensive
• May take many years before the investment pays off

4
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

5
Fixed Parameters

• Fixed average power usage (kWh) for both cases
• Analysis periods of 10, 20, and 30 years
• Solar System life of 30 years

6
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

7
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
8
Present Worth Analysis

• Cash flows
• Conventional energy
• Solar Monthly loan payments additional energy
  costs

• NPW (NPV function) used for each analysis
  period

9
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

10
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

11
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