alternative energy vs. conventional energy team 7 mark ponciano aaron poplar maritza robles
TRANSCRIPT
Alternative EnergyAlternative EnergyVS.VS.
Conventional EnergyConventional EnergyTeam 7Team 7
Mark PoncianoMark PoncianoAaron PoplarAaron Poplar
Maritza RoblesMaritza Robles
Business DetailsBusiness Details
Building Size: Building Size: 4500 sq. ft. 4500 sq. ft.
Energy Consumption: Energy Consumption: 3600 kWh per month3600 kWh per month
Solar to provide Solar to provide 80% of energy needs80% of energy needs
Business Life: Business Life: 30 years30 years
Energy OptionsEnergy Options
1.1. Use solely Use solely CONVENTIONAL ENERGYCONVENTIONAL ENERGY• Southern California EdisonSouthern California Edison
2.2. Purchase Purchase SOLAR PANELSSOLAR PANELS
• Loan OptionsLoan Options
• 10-year Loan10-year Loan• 20-year Loan20-year Loan• 30-year Loan30-year Loan
Conventional EnergyConventional Energy
ProsPros No Installation CostNo Installation Cost Minimal Weather Minimal Weather
DependenceDependence
ConsCons Larger Monthly Larger Monthly
PaymentsPayments Not as Not as
Environmentally Environmentally FriendlyFriendly
Blackout PotentialBlackout Potential
Solar EnergySolar Energy
ProsPros Lower Monthly Lower Monthly
PaymentsPayments Environmentally Environmentally
FriendlyFriendly
ConsCons Large Initial CostLarge Initial Cost Increased Increased
MaintenanceMaintenance Weather DependencyWeather Dependency
Initial Plan DetailsInitial Plan Details
Annual Energy Consumption: Annual Energy Consumption: 43200 kWh43200 kWh
Conventional Cost Per KWh: Conventional Cost Per KWh: $0.17$0.17
Consumption Increase Per Year: Consumption Increase Per Year: 2%2%
Conventional Energy Cost Increase: Conventional Energy Cost Increase: 3%3%
MARR: MARR: 10%10%
Solar System SizeSolar System Size
80% Energy from Solar: 80% Energy from Solar: 34560 kWh34560 kWh
20% Energy from Conventional: 20% Energy from Conventional: 8640 kWh8640 kWh
Sun hours: Sun hours: 8 hrs/day8 hrs/day
Cushion: Cushion: 10%10%
Solar System Size: Solar System Size: 13150 Watts/hr13150 Watts/hr
Installation Cost per Watt: Installation Cost per Watt: $8.00$8.00
RebatesRebates
California Solar Incentive: California Solar Incentive: $2.30 / Watt$2.30 / Watt
Government Rebate: Government Rebate: 30% up to $200030% up to $2000
Initial Solar Installation Costs: Initial Solar Installation Costs: $118,350$118,350
After Rebate: After Rebate: $86,105$86,105
Loan Interest Rate: Loan Interest Rate: 7%7%
Cash FlowsCash Flows
Cash Flows From Year 1-30
2000
4000
6000
8000
10000
12000
14000
16000
18000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Year
An
nu
al C
os
t
Conventional
10-year Loan
20-year Loan
30-year Loan
Initial ConditionsInitial Conditions
Energy SystemEnergy System EUACEUAC
ConventionalConventional $8,871$8,871
Solar: 10-year LoanSolar: 10-year Loan $17,962$17,962
Solar: 20-year LoanSolar: 20-year Loan $17,413$17,413
Solar: 30-year LoanSolar: 30-year Loan $17,074$17,074
Usable SunlightUsable SunlightChange in Sun Hours
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0
Sun Hours
EU
AC
Conventional Energy
Solar: 10-yr Loan
Solar: 20-yr Loan
Solar: 30-yr Loan
Average usable California Sun Hours: 5.511 hours
Percent Increase of Percent Increase of Conventional Energy per kWhConventional Energy per kWh
Intercept at 10.25% Increase
ConclusionConclusion
Select Conventional if…Select Conventional if… Solar Panel Cost is Great than $5.39Solar Panel Cost is Great than $5.39
Annual Cost of Conventional does not Annual Cost of Conventional does not Increase more than 10.25% Increase more than 10.25%
MARR is greater than 1.3%MARR is greater than 1.3%
ConclusionConclusion
Select Solar if….Select Solar if…. Solar Panel Cost Less than $5.39Solar Panel Cost Less than $5.39
• May sacrifice QualityMay sacrifice Quality
Annual Percent Increase of Conventional Annual Percent Increase of Conventional Energy is greater than 10.25%Energy is greater than 10.25%
Environmentally Conscious Environmentally Conscious Regardless of CostRegardless of Cost