HOME SOLAR ENERGY SYSTEM: A FEASIBILITY STUDY.
Rational
he study's main intent is the application of capital budgeting and break-even analysis, two topics
encountered in Managerial Accounting in the Professional Science Masters in Renewable Energy
Engineering and in the Master in Management, graduate programs of the College of Engineering and
College of Business, Economics and Accountancy, respectively.
‘As renewable energy is taking the center stage for energy and environmental sustainability, it is the
concern of the homes to partake the economic benefits that they may, at least in their respective
households, to invest into and manage.
At this time, there are at least a couple of solar farms that have been established in locos Norte,
commercially selling their energy generated to the local electric cooperative aside from those generated
from the wind farms. While the local electric cooperative retails the purchased energy to consumers, the
latter has not yet experienced any economic benefit, ike drop in electricity cost which has been their
expectation, when renewable energy especially windmills entered the local scenery.
Ithas been the clamor of some households that, in some little ways, are appreciative of how solar energy
may lower their energy cost, as their streetlights are solar-powered, that their homes may conveniently
hamess solar energy for power sustainability. Some homes have purchased small-sized solar power
boards with too limited power production that serves only as an alternative for lighting a few light bulbs
during brown-outs.
To respond to this clamor, this feasibility study may give them an overview of their investment cost toward
a long-run investment viability (i.., maintenance and reinvest ments), the returns vis-d-vis their electric
bills from the local electric cooperative, and the efficiency of the system vis-a-vis the service of the local
cooperative.
‘Mechanics of this study for the two groups of students (Le., PSMREE and MM):
[As this study is limited to a household system, it shall only focus on the technical and economic aspects.
However, if the groups may later take interest in the sale of electricity, this shall serve as springboard in
establishing a corporate commercial set-up.
In the technical study, the PSMREE group must provide data for the following in details:
1. The electrical load for a typical home considering the lighting system; appliances like
refrigerator, television, computer set, water pump;
2. The cost of materials, labor and overhead to fabricate the solar energy system to supply the
electrical load above including auxiliary devices like voltage regulator;
3, The periodic (monthly or an appropriate period) maintenance and other relevant costs;
4. Projected efficiency (e.g. voltage consistency, power storage efficiency, etc.);
5. Relevant technical drawings and graphs;
6. Others that the group may consider as important for the establishment of an ideal set-up (Refer
to the study conducted for the Mariano Marcos Memorial Hospital and Medical Center).
\-
ikIn the economic study, the MM group must do the following:
1. Establish the cost of investment and retums based on the data provided by the PSMREE group;
2. Provide analyses of capital investments and break-even and comparative relevant cost data with
the current electrical consumption cost of the household unit;
3, Makea sliding-scale electrical load-invest ment table starting from the break-even point;
4, Provide relevant graphs.