First Name:
Aaron
Last Name:
Ammar
Major Department:
Finance and Banking
Thesis Director:
Delbert Goff
Date of Thesis:
May 2009
Given that the depletion of fossil fuels is one of the most important issues that the world currently faces, it is imperative that nations and organizations invest in exploring alternative energy sources and ways of reducing energy consumption. The purpose of this study is to examine the cost effectiveness of investing in solar photovoltaic energy as a renewable alternative energy source and in energy conservation as a way of reducing energy consumption. As a means toward this end, the author developed a model that couples technical and financial parameters drawn from a solar photovoltaic array and implementable energy conservation measures for Raley Hall on Appalachian State University’s main campus. The author compares energy cost savings under different financing and performance regimes for institutional, residential, and commercial applications. The results indicate that photovoltaic solar energy is most cost effective for businesses with large tax rates that install a non-custom array. In the absence of allowable incentives, the installation of a photovoltaic solar array seems to have no financial benefits. By and large, conserving fossil fuel produced conventional energy is the most viable and economical method to save energy and lessen our dependence on fossil fuels when compared to photovoltaic solar arrays.