Forum discussion
NC-2009 EAp2: Minimum Energy Performance
It is required to factor in the initial equipment installation costs when calculating the annual cost for on-site renewable energy for a proposed building? For a PV system, the initial costs are quite high, but the annual cost for the energy produced is near zero.
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Marcus Sheffer
LEED Fellow7group / Energy Opportunities
LEEDuser Expert
5909 thumbs up
February 19, 2014 - 4:45 pm
The "annual cost" is really the avoided annual energy cost, so no you do not include the initial equipment costs. So if a PV system produces 1000 kWh per year then you multiply that times the virtual electric rate to determine the annual cost.
Kai Andrade
4 thumbs up
February 19, 2014 - 6:43 pm
So the calculated virtual electric rate for a building using total of 10,000 kwh total would be:
From Utility Company: 9,000 kwh at $0.25/kwh = $2250.
From PV: 1,000 kwh at $0.00/kwh = $0
Virtual rate: $2250/10,000 kwh = $0.225 per kwh
Is this correct?
Marcus Sheffer
LEED Fellow7group / Energy Opportunities
LEEDuser Expert
5909 thumbs up
February 19, 2014 - 8:16 pm
Building consumption (not accounting for the PV) is 10,000 kWh and electric cost without the PV is $2500. Virtual rate is $0.25/kWh.
Virtual rate times 1000 kWh produced by PV equals a $250 renewable contribution.
Kai Andrade
4 thumbs up
February 19, 2014 - 9:56 pm
Marcus,
Thanks for the clarification.