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Financial Analysis of Solar Energy Applications with Endogenous System Sizing

Published online by Cambridge University Press:  05 September 2016

Lewell Gunter  and
Webb M. Smathers Jr.
Lewell Gunter
Affiliation:
Department of Agricultural Economics, University of Georgia
Webb M. Smathers Jr.
Affiliation:
Department of Agricultural Economics, University of Georgia
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Abstract

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.

Keywords

solar energyeconomicssolar water heatingdairy water heating
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 16 , Issue 2 , December 1984 , pp. 21 - 30
Copyright
Copyright © Southern Agricultural Economics Association 1984

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