TECHNOECONOMIC EVALUATION OF A SOLAR HOT-WATER SYSTEM

We have developed a procedure for assessing the economic viability of a solar water heater in a dynamic economic environment. The optimum li fe time for replacement of the system and the payback period are calcu lated for different interest rates and different increases in maintena nce. It is concluded that (a) the optimum life time of a solar hot wat er system for replacement decreases with an increase in maintenance co st, (b) the actual life of the system can be increased by increasing t he initial maintenance cost without replacement after the optimum life time and (c) the payback period increases with an increase in initial maintenance cost and also with the rate of increase in maintenance co st.