Problem 2 (20 points) A solar power company plans to invest in a 2 MWPV system at a sunny location. Two sites are under investigation: Fresno County in California and Merced in California. The company will minimize the system degradation to less than 0.25%/year by aggressive maintenance and repairs. The company expects that the system will be down for 14 days/year for maintenance or repair. The total initial costs of the system are expected to be $2.5 M, and the average annual maintenance/repair costs are expected to be 5% of the initial costs. The company plans to invest 30% equity and finance 70% of the capital costs as debt at 6%/year. The company expects to get feed-in tariff of $0.75/kWhe for 20 years in Fresno and $0.25/ kWhe for 20 years in Merced. Assume the panels will degrade by 0.20% per year. Used the attached file with solar data for California to obtain solar radiation data for the location. a. What is the MWh//day for both counties? Use the resource found in the supplemental attachment. b. What is the LCOE for the system in Fresno and in Merced? c. What is the IRR for the system in Fresno and Merced? d. Based on your analyses in a' - 'c' where should the company place the solar site, in Fresno or Merced? Problem 2 (20 points) A solar power company plans to invest in a 2 MWPV system at a sunny location. Two sites are under investigation: Fresno County in California and Merced in California. The company will minimize the system degradation to less than 0.25%/year by aggressive maintenance and repairs. The company expects that the system will be down for 14 days/year for maintenance or repair. The total initial costs of the system are expected to be $2.5 M, and the average annual maintenance/repair costs are expected to be 5% of the initial costs. The company plans to invest 30% equity and finance 70% of the capital costs as debt at 6%/year. The company expects to get feed-in tariff of $0.75/kWhe for 20 years in Fresno and $0.25/ kWhe for 20 years in Merced. Assume the panels will degrade by 0.20% per year. Used the attached file with solar data for California to obtain solar radiation data for the location. a. What is the MWh//day for both counties? Use the resource found in the supplemental attachment. b. What is the LCOE for the system in Fresno and in Merced? c. What is the IRR for the system in Fresno and Merced? d. Based on your analyses in a' - 'c' where should the company place the solar site, in Fresno or Merced