Question: This is the assignment I have been given please help. Your goal is to perform a feasibility study on solar panels installations in Nova Scotia
This is the assignment I have been given please help.
Your goal is to perform a feasibility study on solar panels installations in Nova Scotia in 2019, when Efficiency Nova Scotia offered maximum rebates - up to $10,000. By 2020, Efficiency NS lowered maximum rebate to $6,000. Exhibit 1 highlights Exhibit 1: solar panels production and costs some details on a estimated annual production, kWh 8,770 prospective solar cost, CAD 26,750 panels installation in a HST at 15% 4,013 townhouse in total, CAD 30,763 Wolfville, NS. rebate 8,775 two-way meter, NS Power 300 net cost, CAD 22,288 Utility rates are expected to go up: in December 2019, the Nova Scotia Utility and Review Board (UARB) approved Nova Scotia Power's three-year fuel stability plan. In 2020, 2021 and 2022, residential electricity rates will increase an average of 1.2% each year. Price per kWh was around $0.15603 in 2019. Fixed chart. was $10.83 per month. All numbers are pre-tax. Exhibit 2 lists bi- Exhibit 2: bi-monthly power consumption monthly power energy used k Wh consumption by the Feb - Mar 4,840 house in 2018-2019: Apr - May 2,770 Jun - Jul 1,978 Aug - Sep 629 Oct - Nov 1,769 Dec - Jan 4,179 Total 16,165 Efficiency Nova Scotia limits rebates Exhibit 3: actual output by constraining installation size Month kWh projected power generation should Nov 2019 467 not exceed power consumption. In Dec 2019 345 this case, Efficiency NS got it wrong Jan 2020 286 - the system is installed on the Feb 2020 713 southern slope of the roof in Mar 2020 942 Wolfville, which gets more sunshine Apr 2020 1,278 than an average community in NS, May 2020 1,427 and it is more efficient. Actual Jun 2020 1,362 monthly output numbers are listed in Jul 2020 1,329 Exhibit 3: Aug 2020 1,481 Sep 2020 1,172 Oct 2020 851 total 11,651 You need to perform your analysis under two scenarios: Scenario 1 ($1): the system remains in place in perpetuity, you are getting a rebate of $8,775. Assume actual output. Scenario 2 ($2): the system remains in place for 25 years, and you are getting a rebate of 6,000. Assume projected output. Your goal is to estimate rate of return under each of these scenarios. You may have to use Solver in Excel or go by trial-and-error. If you are curious, visit www.energyhub.orgova-scotia/ for some details of solar panels installation. Further, below are power consumption numbers for that property in 2018-2019 for a full-year cycle