A solar system is to be installed in the Phoenix, Arizona. The estimated amounts of energy from system as a function of collector area are shown in the following tabulation. If the solar system costs $195/m2 and is to be paid off over 25 years at 10% interest, prepare the total cost curve and specify the cost optimal system. Assume that the backup fuel is fuel oil at $7/GJ and that the fuel price is inflating at 8%/year. The total energy demand for which the solar system is constructed is estimated to be 1000 GJ/year.
| Collector Area (m^2) |
Energy Delivered (GJ) |
| 100 |
336 |
| 150 |
444 |
| 200 |
531 |
| 250 |
612 |
| 300 |
673 |
| 400 |
791 |
| 500 |
856 |
| 600 |
915 |