Skip to main content Accessibility help

Financial Analysis of Solar Energy Applications with Endogenous System Sizing

  • Lewell Gunter (a1) and Webb M. Smathers (a1)


This paper is concerned with analysis of economic feasibility of solar energy systems. Methodology for estimating energy output from different sized systems is briefly presented, and this is used to determine technical coefficients for a mixed integer model which optimizes the size of the solar heating unit for a particular use. An empirical example of hot water heating on a Georgia dairy is presented. Cost curves are provided for the dairy example to illustrate the effect of sizing on the economic feasibility of solar heating and to elucidate the structure of the optimal sizing decision.



Hide All
Baumol, William J. Economie Theory and Operations Analysis, 3rd Ed., Englewood Cliffs: Prentice-Hall, Inc., 1972.
Beckman, William A., Klein, Sanford and Duffie, John. Solar Heating Design by the f-Chart Method, John Wiley and Sons, New York, 1977.
Benson, Ben. Georgia Institute of Technology, School of Geographical Sciences, personal communication.
Brandemuehl, M. J. and Beckman, W. A.Economic Evaluation and Optimization of Solar Heating Systems.Solar Energy, 23(1979):110.
Copeland, Randall C. An Economic Analysis of Refrigerant Heat Exchanger Technology Available to Georgia Dairyman, Unpublished M.S. Thesis, University of Georgia, 1979.
Copeland, Randall and Miller, Bill R.. An Appraisal of Refrigerant Heat Exchanger Technology as Investment Potential in Georgia Dairies, The University of Georgia, College of Agriculture Experiment Stations, Research Bulletin 254, October 1980.
Hardy, William E. Jr., Clark, Joy M., and White, Morris. “Planning Solar Heating for Poultry—A Linear Programming Approach.So. J. Agr. Econ., 15(1983):711.
Hartman, Roland C.Solar Heating for Brooding? How Soon?Poultry Digest, March 1977, pp. 130135.
Hayden, M. B., and Thompson, P. D.Solar Thermal Systems in the Milking Parlor.” Paper presented at the Winter Meeting of the American Society of Agricultural Engineers, Chicago, Illinois, 1977.
Heid, Walter G. Jr. The Performance and Economic Feasibility of Solar Grain Drying Systems, USDA-ESCS, Agricultural Economic Report No. 396, 1978.
Hollands, K. G. T., Chinneck, J. W. and Chandrashekar, M.. “Collector and Storage Efficiencies in Solar Heating Systems.Solar Energy, 23(1979):471478.
Jarrell, James Hoyt II. An Economic Analysis of Integrated Use of Solar Panels and a Waste Heat Scavenger on a North Georgia Dairy, Unpublished M.S. Thesis, University of Georgia, 1982.
Katzman, Martin T. and Matlin, Ronald W.. “The Economics of Adopting Solar Energy Systems for Crop Irrigation.Amer. J. Agr. Econ., 60(1978):648654.
Kennedy, Peter. A Guide to Econometrics, Cambridge, Massachusetts: The MIT Press, 1979.
Kottke, Marvin. “The Anatomy of a Step Supply Function.Amer. J. Agr. Econ., 49(1967):107118.
Kreider, Jan F. and Kreith, Frank. Solar Heating and Cooling, McGraw-Hill Book Company, New York, 1975.
Kwon, O. Yul. “An Economic Evaluation of Solar Grain Drying: Its Methodology and Application to Saskatchewan.Canadian J. Agr. Econ., 28(1980):167174.
McCarl, Bruce, Barton, David, and Scharage, Linus. MIPZI—Documentation on a Zero-One Mixed Integer Programming Code; Department of Agricultural Economics, Station Bulletin No. 24; Purdue University; West Lafayette, Indiana; October, 1973.
Penson, John B. Jr. and Lins, David A.. Agricultural Finance, Englewood Cliffs, N.J.: Prentice-Hall, Inc., 1980.
Solar Panels Furnish Heat for this Dairy.Progressive Farmer; March, 1980, p. 41.
U.S. Department of the Treasury, Internal Revenue Service. Farmer's Tax Guide, Publication No. 225, Oct., 1981.
Vaughn, Donnie C. and Vaigneur, H. O.Heat Recovery for Dairies.University of Tennessee, Agricultural Extension Service, Publication 835; March, 1980.


Financial Analysis of Solar Energy Applications with Endogenous System Sizing

  • Lewell Gunter (a1) and Webb M. Smathers (a1)


Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed