A solar system is to be installed in Phoenix, Arizona. The estimated amounts of energy from the 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.
