Earth Science: Geology, the Environment, and the UniverseChapter 26:
Energy ResourcesProblem of the WeekSolar Energy
The Sun is a star that lies at the center of our solar system bathing space, and the planets that revolve around it, in energy. Each planet, from Mercury to Pluto, revolves around the Sun at various distances, and as a result, each planet receives varying amounts of radiation. The closer to the Sun, the more intense the radiation. The radiation comes in many forms including light, heat, and X rays. The most important forms of radiation to consider for this problem are heat and light radiation. As a nation, we comprise 6% of the world’s energy consumers and we use 30 % of Earth’s mineral and energy resources each year. As a result of our heavy reliance on fossil fuels, and in an effort to find ways to reduce air and other kinds of pollution, solar energy has been identified as an alternative energy source. Realizing that we must begin developing alternative energy resources such as solar energy, states such as North Carolina have instituted tax credits to encourage the installation of solar energy systems in homes and businesses. These credits allow home and business owners to recover some of the initial costs of the installation of a solar energy system. The state gives a 40% credit for solar energy systems on residential buildings and 35% credit for commercial and industrial solar systems. Problem:
Here is an example of the costs, tax credit, and savings given by the North Carolina Solar Center. Use the following information to answer these questions: How long will it take for this business to totally recover the cost of their investment and to begin saving money on their electricity? Is it worthwhile for the business to install the system? Solar Ventilation Preheating Case Study
Fresh Air Make Up for Manufacturing Facility
- Installed cost for a commercial-industrial Sun absorbing wall with 4,700 square feet of collector wall, 3 fans, and 150 feet of duct would be $66,000.
- The system would generate $7,000 per year in fuel savings by preheating ventilation air.
Effects of Tax Credits on System Cost
Solar System Cost $66,000
N.C. Solar Tax Credit (35%) $23,100
Federal Solar Tax Credit (10%) $ 6,600
Tax Effect of MACRS* $ 8,572
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Total System Cost $27,728
*Modified Accelerated Cost Recovery System  | 
