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The economics of an active solar heating system
The American University of Armenia recently installed a shower system in the ground floor of its building. In this note we examine the economic viability of using an active solar system to heat the showers. Using conventional discounted cash flow analysis as well as two other economic assessments of the capital investment, we demonstrate that it is economically justifiable to invest in a solar heating system based on the anticipated savings in heating costs over the lifetime of the system.
Keywords: active solar heating, economic assessment, solar energy, solar power, economic viability, showers, discounted cash flow, capital investment, cost savings
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