Solarize Me

1
Solarize Me!

• Team 1
• Kunal Muchhala
• Luis Rodriguez
• John Scott

2
Scenario

• You have recently acquired a new home and have to
  decide how to power it.
• Conventional power is already installed but as an
  environmentally conscious individual you also
  want to consider a conversion to solar power.
• Economic analysis will help you decide

3
Scenario Details

• 2000 sq. ft. house in Pomona, family of 4., will
  be owned for 30 years
• Medium priced solar power system will be
  alternative which will supply up to 80 of power
  needs
• Excess solar power will be sold back to power
  company
• Solar power will be used to supplement existing
  electricity
• MARR is 6

4
Options

• One option is to keep the conventional energy
  setup (Power from the power lines complements of
  Southern California Edison)
• The other option is solar paneling on the roof to
  complement or replace purchased energy

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Buy Power

• Pros
• No installation costs (already installed)
• No panels on roof (better appearance)
• Low weather dependence

• Cons
• Higher monthly payments
• Blackouts
• Not as green

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Solarize Me!

• Pros
• Lower monthly payments
• Energy during blackouts
• Environment friendly

• Cons
• Installation cost
• Panels on roof (appearance)
• Weather dependant

7
Findings

• (Using Present Worth Analysis)

8
Variables and Calculations

• Annual Power Used 12187 kWh
• Percent Power from Solar 80
• Power from Solar 9749.6 kWh
• Power from Standard 2437.4 kWh
• Cost of Electricity 15 /kWh
• Cost for 12187 kWh 1828.05
• Cost for 2437.4 kWh 365.61

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Variables and Calculations (cont.)

• Solar Power need per day 26.7 kWh
• Daily Usable Sunlight 8 hr
• Power needed each hour of sun 3339 W
• With 15 buffer 3840 W
• Installation cost per needed watt 7.00
• Total Installation Cost 26,878.18
• Government Scholarship percentage 30
• Net Installation Cost 18,814.72

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Bottom Line
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Cash Flows
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Cash Flows (cont.)
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Present Worth Analysis
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Sensitivity Analysis
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Percent Power From Solar Panels
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Cost of Electricity
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Hours of Usable Sunlight
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Installation Cost (by solar power needed)
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Free Money
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Minimum Attractive Rate of Return
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Period of Investment