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Alternative Energy VS. Conventional Energy

Alternative Energy VS. Conventional Energy. Team 7 Mark Ponciano Aaron Poplar Maritza Robles. Business Details. Building Size: 4500 sq. ft. Energy Consumption: 3600 kWh per month Solar to provide 80% of energy needs Business Life: 30 years. Energy Options.

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Alternative Energy VS. Conventional Energy

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  1. Alternative EnergyVS.Conventional Energy Team 7 Mark Ponciano Aaron Poplar Maritza Robles

  2. Business Details Building Size: 4500 sq. ft. Energy Consumption: 3600 kWh per month Solar to provide 80% of energy needs Business Life: 30 years

  3. Energy Options • Use solely CONVENTIONAL ENERGY • Southern California Edison • Purchase SOLAR PANELS • Loan Options • 10-year Loan • 20-year Loan • 30-year Loan

  4. Conventional Energy Pros No Installation Cost Minimal Weather Dependence Cons Larger Monthly Payments Not as Environmentally Friendly Blackout Potential

  5. Solar Energy Pros Lower Monthly Payments Environmentally Friendly Cons Large Initial Cost Increased Maintenance Weather Dependency

  6. Initial Plan Details Annual Energy Consumption: 43200 kWh Conventional Cost Per KWh: $0.17 Consumption Increase Per Year: 2% Conventional Energy Cost Increase: 3% MARR: 10%

  7. Solar System Size 80% Energy from Solar: 34560 kWh 20% Energy from Conventional: 8640 kWh Sun hours: 8 hrs/day Cushion: 10% Solar System Size: 13150 Watts/hr Installation Cost per Watt: $8.00

  8. Rebates California Solar Incentive: $2.30 / Watt Government Rebate: 30% up to $2000 Initial Solar Installation Costs: $118,350 After Rebate: $86,105 Loan Interest Rate: 7%

  9. Cash Flows

  10. Initial Conditions

  11. Loan Interest Rate Regardless of Loan Interest Rate, Conventional Wins.

  12. System Size

  13. Cost of Solar Panels Per Watt Intercept at Solar Panel Cost: $5.39

  14. Usable Sunlight Average usable California Sun Hours: 5.511 hours

  15. Cost of Conventional Energy per kWh

  16. Percent Increase of Conventional Energy per kWh Intercept at 10.25% Increase

  17. Change in MARR Intercept at 1.3% MARR

  18. Conclusion Select Conventional if… Solar Panel Cost is Great than $5.39 Annual Cost of Conventional does not Increase more than 10.25% MARR is greater than 1.3%

  19. Conclusion Select Solar if…. Solar Panel Cost Less than $5.39 May sacrifice Quality Annual Percent Increase of Conventional Energy is greater than 10.25% Environmentally Conscious Regardless of Cost

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