Solar Benefit Analysis

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Working Committee

 

Project
The purpose of this study is to analyze the economic feasibility of various solar technologies in the San Luis Valley of Colorado. This is accomplished by performing a feasibility analysis on three residential buildings from the region and identifying trends and similarities between the analyses. Typically, energy efficiency measures are more cost effective than solar technologies so we will also evaluate energy efficiency measures for these buildings. The three case studies are compared to determine if there are correlations that can be used as general rules of thumb for those interested in purchasing or installing solar energy systems. The houses modeled include a two-story, one-story and modular home.

Area
The San Luis Valley of Colorado, located in the southern central part of the state, is one of the most impoverished areas of the state. The average per capita income is approximately $12,000 per year, about half that of the state average. Land and real estate values are some of the lowest in the state and the local economy is struggling. This project aims to provide the region with information specific to the San Luis Valley on solar energy solutions in an effort to promote commerce in this area and give a boost to the local economy. The San Luis Valley (SLV) has the greatest solar resource in the entire state. Nestled between the San Juan Mountains to the west and Sangre De Cristo mountains to the east, air coming into the valley is stripped of its moisture as it passes over these high mountain ranges leading to clear conditions and high insolation in the valley. With increasing energy needs and costs, and many people living off grid in the SLV, this area has a great potential to participate in the solar energy market.

The suns energy is clean, ubiquitous and infinitely renewable. Experience has shown that many solar energy systems can save money on operating costs compared to other sources of thermal and electric energy. These systems convert the suns energy into useful energy for space and water heating as well as converting it directly into electricity. The fuel used by these systems (sunlight) is abundant and free. The main drawback of these systems is that typically they have a higher initial cost and increased complexity over more conventional energy systems such as natural gas furnaces and water heaters. In addition, the economic comparison of different systems can be complex due to inherent differences in the technologies, i.e. solar systems have a higher initial cost but the fuel is free, whereas natural gas and other fuel burning appliances are usually less expensive initially but cost more to operate due to ongoing fuel purchases. This analysis will take all costs into account and perform a life cycle cost analysis to determine which systems, over their entire life, are most cost-effective.

In addition to confusion about the cost-effectiveness of solar energy systems, people often do not know where to go to find out about solar energy systems. Consumers that are interested in investigating solar solutions are unsure of who to contact for unbiased information on whether it is cost-effective and also where to go to get systems designed and installed. Another barrier to increased solar use is access to capital. Solar energy systems are inherently capital intensive, whereas other conventional energy systems are much less expensive up front. This high initial cost deters consumers from investing is solar energy systems. Conventional fuel based systems are more attractive to consumers because their cost structure (i.e. costs spread out over time) is more accommodating. Another barrier to implementing solar energy is that some people feel adding a solar system to their house increases its value in the eyes of the tax adjuster but not in the eyes of the real estate market, effectively adding additional external costs to the system. In discussions with local installers they are reluctant to install solar hot water systems due to their complexity. Installers of these systems are usually plumbers without formal training in heat transfer and solar concepts. This makes maintaining and guaranteeing their work difficult. Furthermore, installation companies need to keep people on board that have increased expertise which costs more and is generally seen as a hassle.

While this study will not overcome all barriers to solar energy encountered in SLV its goal is to serve as a basis for informational publications geared toward consumers and installers in the SLV. These publications will serve as an initial primer for people to use when they need basic information about the economic viability of solar energy for their applications. Hopefully these tools will decrease people’s general uncertainty about solar economics and increase the market for solar energy systems in the San Luis Valley.

This project analyzes the economics of energy efficiency and solar energy systems for three different residential buildings. A two-story home, one-story ranch style home and a modular home are evaluated. All of these homes are existing buildings in the San Luis Valley. The homes are first modeled using the whole building simulation tool DOE-2 via eQUEST. The computer models are then calibrated using several years of measured utility data for the building. Once the model is calibrated, it is used to evaluate different energy conservation measures to improve the energy efficiency of the building. Finally the building loads are used to evaluate the potential performance of solar energy systems and the life cycle costs of these systems.

 

 


San Luis Valley RC&D 2005 Million Solar Roofs Program
Adobe Ranch Style House, Two Story Home & Modular Home San Luis Valley Solar Analysis
Energy Anaysis Detail by iCAST


Modular Home


Adobe House


Two Story House

 

Calculate your solar system payback.

More Links to Financial Analysis

 

GREEN HOME IMPROVEMENT LOANS

Saguache County Credit Union
Contact: Kim Weiss
Loan Processor
kimw@sccu4u.net
P.O. Box 337
601 Reynolds Avenue
Moffat, CO 81143
Phone: 719-256-4899
Fax: 719-256-4458
Saguache County Residents
& SLV Rural Electric Coop Customers