ECONOMICS PROJECT

NAME – Samarth S Reddy

CLASS – 11 ‘D’
SUBJECT – ECONOMICS
COLLEGE – CHRIST ACADEMY JUNIOR
COLLEGE
TOPIC – SOLAR ENERGY, A COST-EFFECTIVE
COMPARISON WITH CONVENTIONAL ENERGY
SOURCES.
ACKNOWLEDGMENT –
I would like to express my gratitude to my teacher who gave me this
golden opportunity to work on this project. I got to learn a lot from
this project about solar energy and its pro and cons, its utility in our
day-to-day life. About the importance of solar energy and it being a
cost-effective method compared to other conventional energy
sources like petroleum, natural gas and coal for example. It made
me research a lot about my topic and broaden my knowledge. I
learnt a lots of new things and facts, that many would’ve overlooked.
I would also like to thank my friends and parents, everyone who
helped me and supported me in my project, without whose help and
encouragement, I wouldn’t have completed on time and effectively.
They gave different ideas, lots of input and helped me collect the
required information. I am really thankful to all of them for their
support. In the end, increasing their knowledge is the ultimate goal of
every student and I am grateful to my teachers for giving us this
project.
INDEX –
Page 1 (Introduction)
Page 2 (Objectives of the Study)
Page 3 (Review of articles)
Page 4 (Meaning of terms)
Page 5 (Brief History or Background of the Solar energy)
Page 6 (Factors Affecting it)
Page 7 (Merits of Solar Energy)
Page 8 (Demerits of Solar Energy)
Page 9 (Other Sub Topics related to Solar energy)
Page 10 (Statistical Data of PV Installations)
Page 11 (Limitations of the Study)
Page 12 (Conclusion)
Page 13 (Bibliography)
INTRODUCTION –

 Solar energy is the energy obtained by capturing heat and light

from the sun. Energy from the sun is referred to as solar energy.
Technology has provided a number of ways to utilise this
abundant resource. It is considered a green technology because
it does not emit greenhouse gases. Solar energy is abundantly
available and has been utilised since long, both as e-city and a
source of heat. It is an important source of renewable energy and
its technologies are broadly characterized on either passive solar
or active solar depending on how they capture and distribute
solar energy. Ex-convert it into solar power. Active solar
techniques include the use of photovoltaic system concentrated
solar panels and solar water heating to harness the energy.
Passive solar technologies include orienting a building to the
sun selecting material with favourable thermal mass or light
dispersing properties and designing spaces the naturally
circulate air. Solar energy is considered to be eco-friendly and a
cost-effective energy source in the world as compared to the
conventional coal and fossil fuels that get depleted and produce
a lot of dust and ashes in the air and hence are considered to be
harmful to society and environment, as well as the biological
diversity.
OBJECTIVES OF THE STUDY –

1) To know the most effective way of utilizing solar energy.

2) To conduct a better comparison between solar energy and

conventional energy.

3) By understanding these we can save the planet from

various types of pollution and global warming.

4) To understand the main aim of renewable energy, which is to

produce cheap and clean energy. Clean energy is energy that
releases very little or no pollutants into the environment. Of
course, we are all against global warming as a result of non-
renewable energy.

5) This study proves the efficiency of solar energy; it reduces

maintenance and moreover it is renewable.

6) To study the chance of solar energy being the substitute to

conventional energy sources and an eco-friendly energy
source.

7) This study will help decision makers and various

stakeholders to understand the current status, barriers and
challenges for better planning and management in the field of
solar energy.
MEANING OF TERMS –

 Solar energy - Solar energy is radiant light and heat from the Sun that is
harnessed using a range of ever-evolving technologies such
as solar heating, photovoltaics, solar thermal energy, solar architecture,
molten salt power plants and artificial photosynthesis.
 Solar panels - A solar panel, or photo-voltaic (PV) module, is an
assembly of photo-voltaic cells mounted in a framework for
installation. Solar panels use sunlight as a source of energy to
generate direct current electricity. A collection of PV modules is
called a PV panel, and a system of PV panels is called an array.
 Photovoltaic - The photovoltaic effect, or in short, PV effect, is the
process that enables a solar panel to generate voltage or electric current.
The solar panels you see in solar power plants are made
by photovoltaic cells and exposed to the sunlight.
 Renewable energy - Renewable energy is energy that is generated
from natural processes that are continuously replenished. This
includes sunlight, geothermal heat, wind, tides, water, and various
forms of biomass. This energy cannot be exhausted and is constantly
renewed.
 Conventional energy sources - When we cannot reuse a source of
energy after using it once we call them “conventional sources of energy”
or “non-renewable energy resources”. They are the most
important conventional sources of energy. These include coal, petroleum,
natural gas and nuclear energy. Oil is the most widely used source of
energy.
 Solar Thermal Energy - Solar thermal energy (STE) consists of the
transformation of solar energy into thermal energy. It is a form of
renewable, sustainable, and environmentally friendly energy. This way
of generating energy can be applied in homes and small installations, and
large power plants.
BRIEF HISTORY OR BACKGROUND OF THE TOPIC –

 Solar energy is considered to be eco-friendly and a cost-effective energy

source in the world as compared to the conventional coal and fossil fuels
that get depleted and produce a lot of dust and ashes in the air and hence
are considered to be harmful to society and environment, as well as the
biological diversity.

 Many cases of oil spills and explosion shave been taken place in history
that reminds us about the cost that is associated with the environment and
thus makes us think about the nonconventional resources like water, wind
and solar power.

 Nowadays nuclear power is being generated in abundance as its natural

and eco-friendly source of energy.
 In theory, solar energy was used by humans as early as 7th century B.C.
when history tells us that humans used sunlight to light fires with
magnifying glass materials.
 Later, in 3rd century B.C., the Greeks and Romans were known to
harness solar power with mirrors to light torches for religious ceremonies.
These mirrors became a normalized tool referred to as “burning mirrors.”
 Chinese civilization documented the use of mirrors for the same purpose
later in 20 A.D.
 Another early use for solar energy that is still popular today was the
concept of “sunrooms” in buildings. These sunrooms used massive
windows to direct sunlight into one concentrated area. Some of the iconic
Roman bathhouses, typically those situated on the south-facing side of
buildings, were sunrooms. Later in the 1200s A.D., ancestors to the
Pueblo Native Americans known as the Anasazi situated themselves in
south-facing abodes on cliffs to capture the sun’s warmth during cold
winter months.
FACTORS AFFECTING SOLAR ENERGY –

1) Sun Intensity - The intensity of sunlight variably changes the efficiency of a

solar panel throughout the day. Around afternoon when the sun shines at its
peak, increased power output can be produced by solar panels because they can
collect more solar energy at that time.

2) Cloud Covers - Cloudy atmosphere decreases the efficiency of solar panels

by allowing less amount of sunlight to fall on solar panels.

3) Heat Build up - Solar panels can’t efficiently work on higher temperatures.

So building up more heat energy proves to be a challenge.

4) Warm climate region - usually face the problem of heat build-up in solar
panels. Heat build-up can reduce the power output by 10% to 25%. The
magnitude of heat can increase the conductivity of semiconductors of
photovoltaic cells resulting in charge balance and reduced electrical field.

5) Cleanliness of the solar panel surface - The cleanliness of solar panel surface
also affects the photoelectric power conversion. It is required to know much
about the actual situation of solar panel to be polluted in the environment,
determine the contamination of the solar panel surface, especially the impact of
strong wind, strong convection and sandstorm weather on the surface of solar
panel, and then determine the cleaning frequency of the solar panels according
to the local labour cost.

MERITS OF SOLAR ENERGY –

1) Earns You Tax Credits and Rebates

The federal government offers several incentives to encourage people to buy

solar panels. One of these is the federal residential solar energy credit. Under
this deal, you get 26% of the total cost of buying and installing your panel
system as a federal income tax credit when you file your taxes. Tax Credit and
Rebates are benefits the government provides when you use renewable energy

For instance, if a solar system is worth $20,000, you will pay $3000 less income
tax. You may not be receiving the money in cash, but paying that much less in
taxes is a steal. This tax credit won’t be around forever, though. It will be
reduced to 22% in 2023 and then expire starting 2024 unless Congress decides
to renew it. 

2) Renewable energy source - Solar energy is a renewable energy source it can

be harnessed on all areas of the world and its available every day. We cannot
run out of solar energy unlike some of the other sources of energy.

3) Reduce electricity bills - How much you save on your bill will be dependent
on the size of the solar system and your e-city or heat usage. Moreover, not only
will you be saving on the e-city bill but there is also a possibility to receive
payment for the surplus energy, that you export back to the grid through the
smart export guarantee (SAG).
4) Diverse application – Solar energy can be used for diverse purpose. You can
generate electricity (photovoltaic) or heat (solar thermal) Solar energy can be
used to produce e-city in areas without access to the energy grid, to distil water
in regions with limited clean water supplies and to power satellites in space.
5) No maintenance cost - Solar energy systems generally don't require a lot of
maintenance. You only need to keep them relatively clean, so cleaning them a
couple of times per year will do the job. Most reliable solar panel manufacturers
offer 20-25 years warranty. The inverter is usually the only part that need to be
changed after 5-10 years because it is continuously working to convert solar
energy into e-city and heat.

DEMERITS OF SOLAR ENERGY –

1) COST – The initial cost of purchasing a solar system is fairly high. This
includes paying for solar panels, inverter, batteries, wiring, and the
installation. Nevertheless, solar technologies are constantly developing, so it
is safe to assume that prices will go down in the future.
2) WEATHER DEPENDENT -
Although solar energy can still be collected during cloudy and rainy days,
the efficiency of the solar system drops. Solar panels are dependent on
sunlight to effectively gather solar energy. Therefore, a few cloudy, rainy
days can have a noticeable effect on the energy system. You should also
take into account that solar energy cannot be collected during the night. On
the other hand, if you also require your water heating solution to work at
night or during wintertime, thermodynamic panels are an alternative to
consider.
3) EXPENSIVE STORAGE FACILITIES - Solar energy has to be used
right away, or it can be stored in large batteries. These batteries, used in
off-the-grid solar systems, can be charged during the day so that the energy
is used at night. This is a good solution for using solar energy all day long
but it is also quite expensive. In most cases, it is smarter to just use solar
energy during the day and take energy from the grid during the night (you
can only do this if your system is connected to t

4) Uses a Lot of Space - The more electricity you want to produce, the more
solar panels you will need, as you want to collect as much sunlight as
possible. Solar PV panels require a lot of space and some roofs are not big
enough to fit the number of solar panels that you would like to have. An
alternative is to install some of the panels in your yard but they need to
have access to sunlight. If you don’t have the space for all the panels that
you wanted, you can opt for installing fewer to still

5) Associated with Pollution - Although pollution related to solar energy

systems is far less compared to other sources of energy, solar energy can be
associated with pollution. Transportation and installation of solar systems
have been associated with the emission of greenhouse gases. There are also
some toxic materials and hazardous products used during the
manufacturing process of solar photovoltaic systems, which can indirectly
affect the environment.
OTHER SUB TOPICS RELATED TO SOLAR POWER –

1) BIOFUEL –

Biofuel is fuel that is produced through contemporary processes from biomass,

rather than by the very slow geological processes involved in the formation of
fossil fuels, such as oil. Since biomass technically can be used as a fuel directly
(e.g. wood logs), some people use the terms biomass
and biofuel interchangeably. Solar energy and biofuel, both come under non-
Conventional sources of energy.

2) BIOMASS -

Biomass has significant potential and can be directly burned for heating or

power generation, or it can be converted into oil or gas substitutes. Liquid
biofuels, a convenient renewable substitute for gasoline, are mostly used in the
transport sector.

3) HYRDROPOWER –

Hydropower, or hydroelectric power, is yet another renewable source of energy

that generates power by using a dam or diversion structure to alter the natural
flow of a river or other body of water. Hydropower relies on the endless,
constantly recharging system of the water cycle to produce electricity, using a
fuel which is water—that is not reduced or eliminated in the process. There are
many types of hydropower facilities.

4) TIDAL POWER –

Tidal energy, also referred to as tidal power, is the energy obtained from the rise
and fall of tides. As the tides rise and fall, a massive amount of water moves
toward and then away from shore. Turbines that are placed in the path of this
moving water spin as the water passes by. These spinning turbines are
connected to generators that create electricity. One-way tidal energy is captured
is with the use of tidal turbines. Tidal turbines look like and work like
underwater windmills. 

5) BIOGAS – Biogas, naturally occurring gas that is generated by the

breakdown of organic matter by anaerobic bacteria and is used in energy
production. Biogas is a renewable energy source and can be produced from
organic wastes in anaerobic digesters or collected from landfills.
STATISTICAL DATA OF PV INSTALLATIONS -

LIMITATIONS OF THE STUDY –

1) First limitation of this study will be the pandemic, because of which I

couldn’t directly go and visit places where solar energy panels were used to
convert sunlight to various uses, electricity for example.

2) It would’ve been way more realistic if I could actually ask a person who
has been practicing this method and using the renewable sources of energy
in his day-to-day life, and to obtain information from him/her.

3) If the situation was normal, maybe there would’ve been more group
discussions and library reading sessions, that would’ve helped us gain
different forms of information for the project.

CONCLUSION –
 Solar Energy is a big part of our lives and will be a huge part in our
future lives, as there might not be enough conventional energy
sources that exist in large amounts in the future. But Solar Energy
will as long as the Sun exists. Solar energy has the capacity to provide
all the energy we need.
 We have the ability to harvest that energy and utilize it to the
maximum level, but we need to invest more money and further
upgrade and perfect the technology in hand, in order to make the
most out of the solar energy we are able to harvest. It can be used for
many things, even cooking.
 We can harness solar energy by using photovoltaic cells to convert
the sunlight into energy. The energy so obtained is really beneficial.
It is reliable, resourceful, silent, renewable and clean. Another use of
solar energy, is it helps reduce our expenses on normal electricity.
 Although setting up solar energy power system on built environment
can be costly during the early stages of establishment, it helps us save
energy which helps in sustainability of the environment.
 In the long run, it helps save other expenses and cost as well. We can
use solar energy powered mobile chargers and other automobiles like
bikes, cars also.
 Therefore, Solar Energy is the future energy source in our lives and
it can solve all our energy demands including, eliminating the
pollution caused by the excessive use of other sources of energy or
forms of electricity.

BIBLIOGRAPHY –

 https://shodhganga.inflibnet.ac.in/ (For articles)

