MSE+302+Problem+Set+3_Practice+Only_Solutions - MSE 302...

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MSE 302 Problem Set 3 (Not to be graded) May 1, 2008 I. Let’s take a closer look at the economics of a typical home installation in CA. We’ll warm up with some basic calculations and then move on to some basic financing. 1. An average installation is a 3 kW system. Let’s assume that this is rated for its peak performance at AM 1.5. Let’s then assume the modules are 12% efficient. What surface area does the system cover? a. If we know that we can produce 3kW and we assume we are getting 1kW per square meter incident on the panels at AM 1.5 then with 12% efficiency we would need: kW kW 25 12 . 0 3 = of incident power which is 25 square meters of panels. 2. Now let’s assume that the cost, before rebates or tax incentives, is $8.50/Wp. What is the cost of the installed system? a. This is just 3kW times the $8.50/Wp which is $25,500. 3. Let’s now imagine that the panels last 30 years and that you get an average of 5kWh per kW installed per day. This is a reasonable number for California but will vary greatly by region of the country so you need to be careful with this. What is your cost per kWh of electricity over the lifetime of the panels? a. This would be kWh day kWh x year days yrs / 16 . 0 $ ) / 5 3 )( / 365 )( 30 ( 500 , 25 $ = . This does not represent what someone pays since you will most likely finance part of it but will also get rebates and tax credits. 4. Now let’s be more realistic since you will most likely finance this. Let’s assume that we can put the cost into your mortgage by taking out some type of home equity loan. Use a mortgage calculator to see what the real cost of borrowing $25,550 is
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MSE+302+Problem+Set+3_Practice+Only_Solutions - MSE 302...

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