Economic Analysis of Solar Energy Used for Supplying Heating Load and Electricity Required for a Poultry House

Document Type : Original Research

Authors

1 Department of Mechanical Engineering of Biosystems, Eghlid Branch, Islamic Azad University, Eghlid, Iran.

2 Biosystems Engineering Department, Faculty of Agriculture, Tarbiat Modares University, Tehran, Iran.

Abstract

In this study, the economic analysis of the architectural part of the building, the use of both the solar thermal and solar electric systems in a poultry farm were discussed. In this economic analysis, the implementation of architectural solutions as well as the utilization of the solar thermal system considering the global gas price and the current gas rates in the country and finally the use of solar electric system with different subsidies were analyzed. Economic analysis was conducted using RETSCREEN software. The results showed that the internal rate of return (IRR) for the architectural solutions of using double-glazed windows and wall insulation, considering the global gas price, was estimated as 53.1% and, the investment return, taking into account the inflation and discount rates, was equal to 2.6 years, which is the break-even point of investing in this solution. Utilizing the solar thermal system and without considering the cost of the underfloor heating system, the IRR value is equal to 34.1%, and considering the cost of the underfloor heating system, the IRR value is equal to 27.9%, which is economic in terms of these solutions. This option proves to be cost-effective. When employing the solar electric system with an IRR of 4.4%, this solution proves uneconomical under all circumstances due to the IRR falling below the bank rate and yielding a negative Net Present Value (NPV). However, when considering a 50% government subsidy and a 1.5-fold increase in the electricity purchase tariff for the solar electric system, this solution approaches the threshold of economic viability

Keywords


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