1. Solarize Me! Team 1 Kunal Muchhala Luis Rodriguez John Scott

2. Scenario You have recently acquired a new home and have to decide how to power it. Conventional power is already installed but as an environmentally conscious individual you also want to consider a conversion to solar power. Economic analysis will help you decide

3. Scenario Details 2000 sq. ft. house in Pomona, family of 4., will be owned for 30 years Medium priced solar power system will be alternative which will supply up to 80% of power needs Excess solar power will be sold back to power company Solar power will be used to supplement existing electricity MARR is 6%

4. Options One option is to keep the conventional energy setup (Power from the power lines complements of Southern California Edison) The other option is solar paneling on the roof to complement or replace purchased energy

5. Buy Power Pros No installation costs (already installed) No panels on roof (better appearance) Low weather dependence Cons Higher monthly payments Blackouts Not as “green”

6. Solarize Me! Pros Lower monthly payments Energy during blackouts Environment friendly Cons Installation cost Panels on roof (appearance) Weather dependant

7. Findings (Using Present Worth Analysis)

8. Variables and Calculations Annual Power Used: 12187 kWh Percent Power from Solar: 80% Power from Solar: 9749.6 kWh Power from Standard: 2437.4 kWh Cost of Electricity: 15 ¢/kWh Cost for 12187 kWh: $1828.05 Cost for 2437.4 kWh: $365.61

9. Variables and Calculations (cont.) Solar Power need per day: 26.7 kWh Daily Usable Sunlight: 8 hr Power needed each hour of sun: 3339 W With 15% buffer: 3840 W Installation cost per needed watt: $7.00 Total Installation Cost: $26,878.18 Government Scholarship percentage: 30% Net Installation Cost: $18,814.72

10. Bottom Line CostsSolarStandard Installation$18,814.72$0.00 Annual power$365.61$1,828.05

11. YearSolar CostTotal Solar CostStandard Cost Total Standard CostSolar Savings 1$19,180.33 $1,828.05 -$17,352.28 2$365.61$19,545.94$1,828.05$3,656.10-$15,889.84 3$365.61$19,911.55$1,828.05$5,484.15-$14,427.40 4$365.61$20,277.16$1,828.05$7,312.20-$12,964.96 5$365.61$20,642.77$1,828.05$9,140.25-$11,502.52 6$365.61$21,008.38$1,828.05$10,968.30-$10,040.08 7$365.61$21,373.99$1,828.05$12,796.35-$8,577.64 8$365.61$21,739.60$1,828.05$14,624.40-$7,115.20 9$365.61$22,105.21$1,828.05$16,452.45-$5,652.76 10$365.61$22,470.82$1,828.05$18,280.50-$4,190.32 11$365.61$22,836.43$1,828.05$20,108.55-$2,727.88 12$365.61$23,202.04$1,828.05$21,936.60-$1,265.44 13$365.61$23,567.65$1,828.05$23,764.65$197.00 14$365.61$23,933.26$1,828.05$25,592.70$1,659.44 15$365.61$24,298.87$1,828.05$27,420.75$3,121.88 Cash Flows

12. Cash Flows (cont.) YearSolar CostTotal Solar CostStandard CostTotal Standard CostSolar Savings 16$365.61$24,664.48$1,828.05$29,248.80$4,584.32 17$365.61$25,030.09$1,828.05$31,076.85$6,046.76 18$365.61$25,395.70$1,828.05$32,904.90$7,509.20 19$365.61$25,761.31$1,828.05$34,732.95$8,971.64 20$365.61$26,126.92$1,828.05$36,561.00$10,434.08 21$365.61$26,492.53$1,828.05$38,389.05$11,896.52 22$365.61$26,858.14$1,828.05$40,217.10$13,358.96 23$365.61$27,223.75$1,828.05$42,045.15$14,821.40 24$365.61$27,589.36$1,828.05$43,873.20$16,283.84 25$365.61$27,954.97$1,828.05$45,701.25$17,746.28 26$365.61$28,320.58$1,828.05$47,529.30$19,208.72 27$365.61$28,686.19$1,828.05$49,357.35$20,671.16 28$365.61$29,051.80$1,828.05$51,185.40$22,133.60 29$365.61$29,417.41$1,828.05$53,013.45$23,596.04 30$365.61$29,783.02$1,828.05$54,841.50$25,058.48

14. Present Worth Analysis MARRPWC SolarPWC Standard 6.00%$22,782.30$25,162.80 Solar Wins!

15. Sensitivity Analysis

16. Percent Power From Solar Panels Percent SolarPWC Solar PWC StandardWinner 100%$22,187.18$25,162.80Solar 90%$22,484.74$25,162.80Solar 80%$22,782.30$25,162.80Solar 70%$23,079.86$25,162.80Solar 60%$23,377.43$25,162.80Solar 50%$23,674.99$25,162.80Solar

17. Cost of Electricity Cost of 1 kWhPWC Solar PWC StandardWinner $0.125$21,943.54$20,969.00Standard $0.132$22,178.39$22,143.26Standard $0.133$22,211.94$22,311.02Solar $0.150$22,782.30$25,162.80Solar $0.160$23,117.80$26,840.32Solar $0.170$23,453.31$28,517.84Solar

18. Hours of Usable Sunlight Sun Hours per Day PWC Solar PWC Standard Winner 6$28,698.88$25,162.80Standard 7$25,317.98$25,162.80Standard 7.5$23,965.62$25,162.80Solar 8$22,782.30$25,162.80Solar 9$20,810.11$25,162.80Solar

19. Installation Cost (by solar power needed) Solar Install Cost per Watt PWC SolarPWC StandardWinner $6.00$20,246.62$25,162.80Solar $7.00$22,782.30$25,162.80Solar $7.93$25,140.48$25,162.80Solar $7.94$25,165.84$25,162.80Standard $8.00$25,317.98$25,162.80Standard $9.00$27,853.65$25,162.80Standard

20. Free Money Scholarship Percentage PWC SolarPWC StandardWinner 0%$30,389.33$25,162.80Standard 10%$27,853.65$25,162.80Standard 20%$25,317.98$25,162.80Standard 21%$25,064.41$25,162.80Solar 30%$22,782.30$25,162.80Solar 40%$20,246.62$25,162.80Solar

21. Minimum Attractive Rate of Return MARRPWC Solar PWC StandardWinner 5.00%$23,539.11$28,101.61Solar 6.00%$22,782.30$25,162.80Solar 7.00%$22,120.72$22,684.35Solar 7.35%$21,908.34$21,909.06Solar 7.40%$21,878.73$21,801.84Standard 8.00%$21,537.00$20,579.79Standard 9.00%$21,017.37$18,780.75Standard

22. Period of Investment Time (years)PWC Solar PWC StandardWinner 10$20,440.66$13,454.61Standard 20$21,943.26$20,967.59Standard 22$22,152.26$22,012.61Standard 23$22,247.98$22,491.19Solar 25$22,423.46$23,368.61Solar 30$22,782.30$25,162.80Solar 35$23,050.44$26,503.52Solar