Now assume an investment cost of $1.50 per watt for the solar panels and the various equipment needs to connect the panels to the electricity grid. This investment cost is in year zero. Include the additional assumptions of: (i) the annual energy cost savings using $0.07 per KWH for electricity price with generated KWH computed in #a occur starting in year one with 1 to 1 net metering allowing the full benefit of energy cost savings to be obtained, (ii) a 20-year life span for the panels, (iii) zero annual maintenance costs, and (iv) an interest rate of 2.0% w
Now assume an investment cost of $1.50 per watt for the solar panels and the various equipment needs to connect the panels to the electricity grid. This investment cost is in year zero. Include the additional assumptions of: (i) the annual energy cost savings using $0.07 per KWH for electricity price with generated KWH computed in #a occur starting in year one with 1 to 1 net metering allowing the full benefit of energy cost savings to be obtained, (ii) a 20-year life span for the panels, (iii) zero annual maintenance costs, and (iv) an interest rate of 2.0% which reflects a post-tax certificate of deposit rate of interest. and having 29,226 as energy KWh generated per year
calculate the following
annual benefits and annual costs
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