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example, assume that the climate is such that an electric heat pump cannot provide adequate space heat for a dwelling on a significant number of days in the winter months, requiring a backup space heating unit. Thus, for comparison purposes among space heating options, the correct cost for the heat pump is not just the direct cost associated with the heat pump but also the costs associated with the backup space heating unit. The introduction of a backup unit in a renewable energy system, such as a solar energy system, raises the issueofthesizeofthesolarenergyportionofthesystemandthesolarfractionprovided. Todetermine the optimal solar fraction, the life-cycle cost of the entire system (including backup) should be computed for different solar fractions and the results compared. As shown by the ordinate on the left in Figure 5-1, the optimal solar system size will correspond to the minimumlife-cyclecost. Forsolarfractionssmallerthantheoptimal,thecostoftheconventionalfuel will make the system’s total life-cycle cost (TLCC)higher, while for larger solar fractions, the increased capital cost associated with the solar panels will make the system’s TLCC higher. As shown by the ordinate on the right in Figure 5-1, the optimal solar fraction is also the point at which the marginal cost per unit of output from the solar energy system equals the marginal cost per unit of output of the conventional alternative. TLCC Conventional Alternatlve LCOE Zonventional Atternative optimum SOLAR FRACTDN Figure5-1. Solarfractionoptimization A renewable energy system for electric utility applications with a backup system is often referred to as a hybrid system. For these electric hybrid systems, the size of the two components (renewable and conventional backup) is sometimes dictated by regulation; i.e., the Public Utilities Regulatory Policies Act (PURPA) requires that no more than 25% of the power be generated by fossil fuels in order to be classified as a qualifiing facility. Storage The purpose of storage is to generate and store energy during low-cost, off-peak periods, so it can be dischargedduringhigh-demand,on-peakperiods. Therearemanyformsofenergystorage. Inanactive solar system for domestic hot water, the tank associated with the backup system may serve as storage, or another tank may be required. A passive solar system may use storage in the form of the mass of the buildingitself,orusemassaddedspecificallyforstoragepurposes. Similarly,thermalstoragemaybe 75PDF Image | A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies
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