Determine which would be no financial benefit to the owner

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Reference no: EM13284332

The subsidy received from the government for the PV system is$8000/=. The additional price paid by the owner for a systemwithout frames is $4500/=. According to the tariff the owner agreedwith the utility company, the income generated is $0.16 per kWh atany time of the day. This figure is expected to rise annualy by20%. Ignore interst rates, any fluctuations in dollar etc. Also assume there would be no power generated by the system after 25years. Considering all of the above, calculate

(i) the cost of the frames above which there would be no financial benefit to the owner due to additional investment on the frames.

(ii) The simple payback period for the two methods of mounting assuming the cost of the frames as $1000/.

Reference no: EM13284332

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