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A businessman intends to invest in a grid-tie PV solar system to supplement the power requirements of
his business’ operations. He intends to secure 100% financing using a loan arrangement with an interest
rate of 12% per annum.
Apart from supplementing his own energy use, the business intends to sell excess power generated back
to the local public utility, which purchases from its customers at a rate of $22 per kWh. In selling power
however, the public power utility operates on a tariff structure that offers reduced rates for larger
customers that is modeled as follows:
This efficiency, η, of a PV system is defined as the total solar energy converted to electrical power
compared to the total direct solar radiation (termed insolation) that falls on the system. Note that the
efficiency of PV panels cannot surpass the maximum theorital efficiency achievable by modern
technology, ηmax, which now stands at 33.8%. The efficiency identified in this expression also accounts
for the dead areas of the PV system such as the gaps around the panels that allows them to be accessed by
personnel.
Studies in the field of PV Solar Engineering have shown that for similar Jamaican facilities using grid-tie
systems, of the total energy utilized by a facility between the hours of 8am and 5pm, the fraction that is
provided by the PV system (rather than from the public utility) is:
f=1−exp(−1.57PinstPpeak), where
Pinst is the total installed capacity (in kW) of the PV system
Ppeak is the peak demand of the facility (or the maximum kW of power that the facility may demand for
its operation at any instant in time)
A thorough energy audit of the facility yielded the following results. Some or all of this information can
be used in performing your analysis of this scenario.
Calculations
You are required to perform and analysis which will, at minimum, provide the businessman and investors
with the following information that will help them to guide their decision.
a. The investor believes that he can source 14%-efficiency panels and is considering installing a 120 kW
system.
Do an analysis to determine if the facility has sufficient roof space to accommodate the system.
If the roof space is insufficient, determine the maximum-sized system that can be accommodated.
b. If the investor sources 14%-efficiency panels, determine the size system that will allow him to break-
even, i.e. results in a net monthly payout of zero.
c. The investor hopes to maximize his profits. Determine the size system size and efficiency that will
allow him to reap the maximum returns on his investment.
Assumptions:
Calculations
7) Irradiance
=( 5 kWh/ 9 h. m2.day )
= 0.55 kW/m2
Total power output = total area * solar irradiance * efficiency
Therefore the roof space of 1150 m2 will be not sufficient for the installation of the 120
kW PV system.
Part C.
The investor hopes to maximize his profits. Determine the size system size and efficiency that
will allow him to reap the maximum returns on his investment.
Draft Report Outline
Executive Summary
Table of Contents
List of Figures
List Tables
Introduction
Background
Purpose of Study
Solar Technology
Methodology
Site Analysis
Analysis of energy demand
Analysis of space requirements
Installation process
Analysis of Solar panels and systems
Economic analysis of 14% efficient Panels
Determination of optimal panel efficiency
Conclusion and Recommendations