A state’s legislation provides tax credits for solar systems. The rules state that the life cycle fuel saving must not exceed the total present worth of the costs of the system within a 25 year period. A solar water heater installed on a house costs a total of $1550, it is expected to meet 60% of an annual load of 19 GJ. The backup energy source is electricity at $0.045/kWhr average. The rule specify that an inflation rate of 12%/year and a discount rate of 7%/year shall be used. Will this heat meet the criterion?

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Cost of solar system 1550 For total savings of the solar system 19GJ 277778 Kwh Sin... View the full answer