After passing the course the student shall be able to
- derive expressions for various equivalent formulae of engineering economics taking the time value of money into account
- describe different measures of financial and economic performance and discuss their relative merits and limitations
- undertake financial evaluation of solar energy systems and compare with other alternatives
- describe and compare different methods of financing solar energy systems
- analyze the effect of regulations and legislation on the economics of solar energy systems
This course includes: different measures of financial and economic performance and their relative merits and limitations specifically for solar energy projects, the time value of money and derivation of relevant formulas including but not limited to, B/C ratios, discount rate, IRR, standard and discount payback period, depreciation, and net present benefit. Also studied are approaches for considering uncertainty, financial incentives, and various financing methods of solar systems. Lastly, regulations, legislation, cultural aspects, maintenance, insurance issues, and subsidy programs are also studied.
Written exam 2 ECTS-credits, home assignment 1 ECTS-credit
Forms of Study
Lectures, exercises and discussions.
- Kandpal, T.C., Garg, H.P.. (2003 ) Financial Evaluation of Renewable Energy Technologies. Delhi : MacMillam India Ltd.. (394 s). ISBN 1-403-90952-0