A university spent 18 million to install solar panels atop a

A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%.

a. If electricity can be purchased for costs of $0.10 per kwh, how many hours per year will the solar panels have to operate to make this project break even?

b. If efficient systems operate for 2,400 hours per year, would the project break even?

c. The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university)?

The answers already posted are wrong. Can i get a correct answer please? thank you

Solution

a)

1 day ---24 hours

365 days - --- x hours

x =8760 hours / year

0.10 kwh / 500 = 1/5000 (1/h)

1/ (1/5000) = 5000 hours

2)

yes, because the maximum that theses project can take are 5000 hours per year

c) i can gladly help you but you should post it in a new question