Question
A home in Los Angeles, CA got a rooftop grid tied PV system installed based on Feed-in Tariff (FIT) policy mechanism. The roof of the
A home in Los Angeles, CA got a rooftop grid tied PV system installed based on Feed-in Tariff (FIT) policy mechanism. The roof of the home was south facing with a roof angle of 25^0250. Premium modules were used for the system with a total installed capacity of 5 kWp, having a system cost of $7/Wp. Overall loss and dc-to-ac conversion efficiency of the system were considered to be 15% and 110% respectively. The inverter conversation efficiency was 95%. Suppose the homeowner received state+ federal investment tax credit (i.e. incentive) of 30% of the system cost and the balance of the system cost after the investment tax credit was borrowed from a bank at 4%/yr for 20 years. Now answer the following questions:
Assume the present Los Angeles electric rate is $0.15/kWh, which will increase at 5%/year. Assume that the city will use this rate to buy from or to sell to the owner at this rate (i.e. like net metering, no FIT benefit). Determine the year when the electric rate in $/kWh will equal the rate of payment to the PV system owner (the city was supposed to pay at this rate that you calculated in question b). Make an MS Excell table showing the owners 20 years cash flow. Example of such table is given bellow.
Year Loan payment (5) Electricity rate(S/kWh) Yearly energy production (kWh) Sell from PV (5) Net profit ($) Cumulative net profit ($) 1 2 2000 2000 0.15 0.1575 8000 8000 1200 1260 -800 -740 -800 - 1540 20 Year Loan payment (5) Electricity rate(S/kWh) Yearly energy production (kWh) Sell from PV (5) Net profit ($) Cumulative net profit ($) 1 2 2000 2000 0.15 0.1575 8000 8000 1200 1260 -800 -740 -800 - 1540 20
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