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Published on: December 3, 2019
Economic feasibility of solar water and space heating
Science (New York, N.Y.)
|March 23, 1979
Summary
Solar water and space heating systems show economic feasibility for homes and apartments. Federal tax credits significantly boost the cost-competitiveness of solar energy, impacting policy decisions.
Area of Science:
- Energy Economics
- Renewable Energy Systems
Background:
- Analysis of solar water and combined water/space heating economic feasibility in 1977-1978.
- Focus on single-family and multi-family residences across four U.S. cities.
Purpose of the Study:
- To evaluate the economic viability of solar heating systems.
- To compare solar systems with conventional heating (electricity, fuel oil, natural gas).
- To assess the impact of federal solar tax credits.
Main Methods:
- Economic analysis using payback period, down payment recovery, and net positive cash flow criteria.
- Comparative cost analysis for solar vs. conventional heating in Boston, Washington D.C., Grand Junction, and Los Angeles.
Main Results:
- Some solar water and space heating systems are economically competitive even without federal incentives.
- The federal solar tax credit substantially improves the cost-competitiveness of solar energy systems.
Conclusions:
- Solar heating systems demonstrate promising economic feasibility, especially with government incentives.
- Findings have implications for energy pricing policies and government tax incentives for solar energy.
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