The university spent $1.8 million to install solar panels atop parking garage. Panels will have capacity of 500kw, have life expectancy of 20 years and assume discount rate is 10%.
i) If electricity can be bought for costs of $0.10 per kwh, how many hours per year will solar panels have to operate to make project break even?
ii) If efficient systems operate for 2400 hours per year, would project break even?
iii) University is seeking a grants to cover capital cost. How big of grant would make project worthwhile (to university)?