EME 810
Solar Resource Assessment and Economics

7.1 Learning Outcomes


By the end of this lesson, you should be able to:

  • define the time value of money;
  • describe the concept of solar fraction;
  • list economic figures of merit in solar project valuation;
  • process simple and complicated financial spreadsheets for solar hot water projects;
  • apply solar savings evaluation to the life cycle costing of small solar projects.

What is due for Lesson 7?

This lesson will take us one week to complete. Please refer to the Course Syllabus for specific time frames and due dates. Specific directions for the assignment below can be found within this lesson.

Lesson 7 Assignments
Required Reading:

J.R. Brownson, Solar Energy Conversion Systems (SECS), Chapter 10 - Solar Project Finance

W. Short et al. (1995) Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies. NREL Technical Report TP-462-5173. (selected sections)

To Do: Discussion Activity: Life Cycle Cost Analysis for Solar Hot Water - Financial Spreadsheet

Quiz Assignment (see Canvas, Module 7)

Project Topic - Submit your ideas for course project to the forum.

Engage in all Try-This and Self-check activities (not graded)

Topic(s): Time value of money and financial spreadsheets

Life Cycle Costs/Savings

Solar Savings

Solar Fraction

Levelized Cost of Energy


If you have any questions, please post them to the Lesson 7 General Questions and Comments Discussion Forum. I will check the forum regularly to respond. While you are in a discussion, feel free to post your own responses if you, too, are able to help out a classmate.