Application of Solar Energy in Food Processing III. Economic Performance Evaluation
ABSTRACT ECONOMIC performance for solar heating of hot water was evaluated for canning, dairy and meat processing operations using the life cycle savings method. This method includes thermal performance of the system along with a set of economic parameters. Results show that life cycle savings and optimum collector area were dependent on type of food processing operation and location. The payback time (time needed for life cycle savings to equal zero) near optimum collector area was 12 to 15 yr. The maximum sensitivity in life cycle savings resulting from a 10% change in each economic variable was approximated using a method outlined by Duffle and Beckman (1980). The combined effect of a 10% change in each economic variable affected the life cycle savings by 5 to 11 times. However, most the sensitivity (2.4 to 5.4 times) was due to uncertainty in the rate of fuel escalation and least sensitivity was for uncertainty in down payment and miscellaneous costs.