Economic analysis of solar industrial process heat systems: a methodology to determine annual required revenue and internal rate of return

Technical Report · Tue Aug 11 04:00:00 EDT 1981

OSTI ID:6255048

Dickinson, W C; Brown, K C

To permit an economic evaluation of solar industrial process heat systems, a methodology was developed to determine the annual required revenue and the internal rate of return. First, a format is provided to estimate the solar system's installed cost, annual operating and maintenance expenses, and net annual solar energy delivered to the industrial process. Then an expression is presented that gives the annual required revenue and the price of solar energy. The economic attractiveness of the potential solar investment can be determined by comparing the price of solar energy with the price of fossil fuel, both expressed in levelized terms. This requires calculation of the internal rate of return on the solar investment or, in certain cases, the growth rate of return.

• Research Organization: Lawrence Livermore National Lab., CA (USA)
• DOE Contract Number: W-7405-ENG-48
• OSTI ID: 6255048
• Report Number(s): UCRL-52814-Rev.1; ON: DE82001628
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
140905*
29 ENERGY PLANNING, POLICY, AND ECONOMY
299001 -- Energy Planning & Policy-- Solar-- (1989-)
CALCULATION METHODS
CAPITAL
COST
ECONOMIC ANALYSIS
ECONOMICS
ENERGY
ENERGY ANALYSIS
ENERGY SYSTEMS
EQUIPMENT
HEAT
HEATING SYSTEMS
INDUSTRY
INFLATION
INSTALLATION
INVESTMENT
MAINTENANCE
NET ENERGY
OPERATION
PROCESS HEAT
SENSITIVITY ANALYSIS
SOLAR EQUIPMENT
SOLAR HEATING SYSTEMS
SOLAR PROCESS HEAT
TAXES