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Financial Analysis of Solar Energy Applications with Endogenous System Sizing

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  • Gunter, Lewell
  • Smathers, Webb M.

Abstract

This paper is concerned with analysis of economic feasibility of solar energy systems. Methodology for estimating energy output from different sized systems is briefly presented, and this is used to determine technical coefficients for a mixed integer model which optimizes the size of the solar heating unit for a particular use. An empirical example of hot water heating on a Georgia dairy is presented. Cost curves are provided for the dairy example to illustrate the effect of sizing on the economic feasibility of solar heating and to elucidate the structure of the optimal sizing decision.

Suggested Citation

  • Gunter, Lewell & Smathers, Webb M., 1984. "Financial Analysis of Solar Energy Applications with Endogenous System Sizing," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 21-30, December.
    • Handle: RePEc:cup:jagaec:v:16:y:1984:i:02:p:21-30_01
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    Cited by:

    1. Breen, M. & Murphy, M.D. & Upton, J., 2019. "Development of a dairy multi-objective optimization (DAIRYMOO) method for economic and environmental optimization of dairy farms," Applied Energy, Elsevier, vol. 242(C), pages 1697-1711.

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