General discussion

Abstract

P. T. Landsberg ( University of Southampton). I should like to draw attention to the importance of inflation in estimating the economic viability of solar collectors. Figure 1 is due to D. J. Toop of B.S.I. and myself (I. E. E. 1979). Plotted vertically is the maximum cost of collectors in £/m 2 for economic viability. The future rate of inflation of fuel prices, is plotted horizontally. The curves rise since fuel price inflation allows one to spend more on the installation without being out of pocket (other things being equal). The money saved, however, loses its purchasing power owing to general inflation, i g , and this has to be taken into account. The higher this is, the more the curves are depressed, and the graph therefore illustrates the effects of differential inflation. Energy is a commodity that will probably suffer rather high differential inflation, since more expensive energy resources have to be exploited as the cheaper ones are depleted.