Economic evaluation and optimization of solar heating systems

Abstract

A procedure is developed for assessing the economic viability of a solar heating system in terms of the life cycle savings of a solar heating system over a conventional heating system. The life cycle savings is expressed in a generalized formby introducing two economic parameters, P 1 and P 2, which relate all life cycle cost considerations to the first year fuel cost or the initial solar system investment cost. Using the generalized life cycle savings equation, a method is developed for calculating the solar heating system design which maximizes the life cycle savings. A similar method is developed for determining the set of economic conditions at which the optimal solar heating system design is just competitive with the conventional heating system. The results of these optimization methods can be presented in tabular or graphical form. The sensitivity of the economic evaluation and optimization calculations to uncertainties in constituent thermal and economic variables is also investigated.