Comprehensive analysis of Electricity Bill in Homer Pro Model:

We must consider the following parameters to effectively analyze the electricity bill
in Homer Pro.
Consumption of Electricity:
Calculation of Electricity Consumption: We collected the historical data from
previous bill to determine the consumption of electricity for our residential address
given. This load profile estimated the energy used over twelve months period with a
total annual consumption of 4950 kWh. This calculation is vital to establish precise
load profile for the residential address in Homer Pro to have an optimized energy
generation and storage.
Load Profile Characteristic: Load profiles describe the variation in energy demands
on different periods of time across the seasons. For example, the peak demand
occurs in July with 20 kWh average consumption daily while the demand is lowest in
December with an average of 12 kWh per day. This variation is the key for modeling
an accurate system as per the energy requirements of the residential address.
Structure of Cost:
Fixed charges: The monthly fee home owners must pay regardless of their energy
usage are fixed charges. In our Home pro model, these charges are estimated to be
$10 per month which resulted in annual cost of $120. They substantially affect the
overall economic analysis and must be taken into consideration.
Variable rates: The cost per kWh of electricity consumer are variable energy
rates. For the analysis we assumed it as $0.12 per kWh for first 500 kWh and 0.15
per kWh for any additional consumption. The monthly calculation is as given below.
In July: (600 kWh)
First 500 kWh: 500 x 0.12 = $60
Rest 100 kWh: 100 X 0.15 = $15
So total variable cost: $75
Demand Charges:
The charges as per the utilities based on peak usage during specific durations are
demand charges. For example, the utility may charge $5 for each kW above 10kW
in a given duration. If the demand in that period was above that limit i.e. 15 kW
instead of 10 kW then demand charges would be applied on rest 5 kW which would
be $5 x 5 kW = $25
Comparison based on different scenarios:
We analyzed two different scenarios in Homer Pro for a grid-connected system and
an off-grid system to compare financial implications of both the systems.
Scenario 1: Grid-connected with present utility rates:
Scenario 2: A hybrid system with only solar panels, wind turbines, and diesel
generator.
These analysis heled consumers and houseowners to make informed decisions
about energy costs for staying grid-connected and remaining off-grid. This data
driven method helped providing clarity on potential savings and overall efficiency of
the system.
Detailed explanation of Renewable resources:
This analysis evaluates the limitation, and benefits of using renewable resources.
Solar Energy:
Advantages: Solar panels are crucial sources used in our project to harness solar
energy and reduce reliance on grid. Our project has twelve solar panels with a
combined capacity of 12 kW.
Limitations: Solar energy generation drops on cloudy weather and rainy days.
Also, the rooftop space limits the installation capacity.
Cost: The solar panels range from $2.50 to $3.50 per watt which can approximately
goes to $30,000 to $42,000 for at 12kW system.
Wind Energy:
Advantages: Wind energy compliments solar energy in low generation periods due
to low sunlight or at night. It is particularly necessary in prolonged periods of low
generation for consistent source of energy.
Limitations: Wind energy depends on the area and sit suitability which may
restrict the installation and affects ROIs.
Cost: Wind energy can cost from $3000 to $5000 per kW, totaling $12,000 to
$20,000 for four turbines.
Battery storage system:
Advantages: We included eight battery storage to store excess energy for low
generation periods. They ensure reliability of the system by ensuring power
availability.
Limitation: Batteries are costly and have a limited lifespan of 10 to 15 years and
may need replacement over the lifetime of the project.
Cost: The costs range from $400 to $700 per kWh which approximately reaches
$12,000 to $20,000 for a 10kWh capacity along with additional O&M costs as $5 per
year per battery.
Diesel Generator:
Advantages: A 25kW generator provides backup power during low renewable
generation.
Limitation: It uses fuel which can take operational cost for the system and increase
overall NPC of the system.
Cost: The cost of generator is $9,500 for purchasing and replacements with $0.05
per hour O&M costs and $0.05 per hour fuel costs.
Converter:
Advantages: The converter is important for transforming renewable energy into
usable electricity for household usage.
Cost: Converter costs $300 with same replacement cost.
Conclusively, the integration of solar panels, wind turbines, battery storage, a
generator and converter are needed to form a robust renewable energy strategy.
3. Most Cost-effective solutions for residential Address:
Grid-Connected System:
A grid connected system is a reliable energy source which provides following
advantages:
Advantages:
Stable Energy Supply: The grid provides and ensure consistent energy supply
specially during peak demand periods when renewable energy sources are
insufficient. The consumers can have uninterrupted energy which may occur in case
of off-grid scenario.
Low upfront cost: Grid-connected system provides a reliable source of energy
without spending a large initial capital for solar energy or battery system. The
financial liability is significantly low which is appealing for most people.
Avoid Blackouts: Consumers can draw energy from grid in times of low generation
periods or emergencies whenever the renewable source is insufficient which
prevents any energy blackouts.
Disadvantages:
Grid Dependance: Prolonged reliance on grid electricity can expose consumers to
price fluctuations in energy prices. Prices can go higher according to market
changes, government policies or local utility pricing structures which leads to
unpredictable monthly electricity bills.
Accumulated Utility Costs: Th total cost of grid-connectivity can add up for staying
grid-connected for a longer period specially for consumers with high energy
demands. This can increase expenses significantly over the years especially in high
demand areas.
Off-Grid System:
Advantages:
Energy Independence: In an off-grid scenarios, houseowners and consumers can
have a complete autonomy of their system and their energy resources which
reduces reliance on external suppliers and mitigate the risk associated with rising
utility prices.
Environmental Sustainability: An off-grid systems allows the utilization of renewable
energy sources like solar and wind which contributes to lower carbon emissions,
aligning with country’s goals for a sustainable and clean environment.
Governmental Incentives:
Houseowners may avail incentives for installing renewable energy systems which
will effectively compensate for initial financial burden.
Disadvantages:
High upfront Cost: Installing independent solar panels with wind turbines and
battery systems can be costly. For residential owners, this could be a barrier unless
it is budgeted adequately.
Maintenance Costs: An off0grid systems requires continuous maintenance and
monitoring to ensue efficient and consistent power supply which can lead to
additional expenses over time. Energy management systems are also complicated
and need appropriate knowledge for ongoing operations.
Economical Recommendation:
To determine the most economical solution for the residential address in Homer Pro
software we need to gather following data and analyze it efficiently for both grid-
connected and off-grid system to estimate NPC for both systems.
Data Collection: The data collection for energy consumption is required to make a
load profile for the energy demand. Our energy demands for the residential address
are around 4950 kWh as estimated by averaging the monthly electricity
consumption for twelve months.
Cost Comparison:
Grid-connected System: This cost for the charges the grid implies according to
energy usage, fixed charges, and demand charges. If grid charges are $0.12 to
$0.15 per kWh the homeowners can calculate monthly bills based on their usage.
Off-grid system: System costs for installing maintaining, and replacing cost for
renewable energy equipment including solar panels, wind turbines and battery
system add to the NPC of the system. The grid connected system in our scenario
was more economical as per the results given in the Home Pro model.
Long-term consideration: Provided the potential rise of inflation and utility costs, an
off-grid systems seems to be a cost economical solution in the long0run specially for
houseowners looking for a verge against future price fluctuations. In our case the
grid-connected system is most feasible given the budget limitations and initial
capital investment as compared to an off-grid system which will have high
maintenance charges and operational costs. Also, an off-grid is more favorable for
peak demand periods when renewable energy is not sufficient.

Project lifetime impacts on results:

Project lifetime Considerations:
A Longer lifetime project i.e. 25 years enables the houseowners to amortize their
initial capital over the project lifetime. This compensates for the cost incurred on
solar energy resources like panels and battery systems. It can help lower the annual
costs and enhance the economic feasibility of the system. Moreover, with the
advancement of renewable technologies, the reduction in bills can be more
significant.
On the other hand, if the houseowners plan to have short lifetime project, the high
upfront cost is not favorable because it can not be amortized during its lifetime. In
such scenarios, the renewable energy is not favorable unless the projected saving
for electricity usage is not significantly large according to the time frame.
Conclusion
In conclusion, the analysis in Homer pro suggests a longer lifespan project for
renewable energy source with a grid-connected system for it to be reliable and
ensure consistent energy supply. Our model presents a detailed analysis for the
electricity bills that can incur during project lifecycle having 25 years of lifespan. So,
the hybrid model configuration is most favorable for our residential address having
solar panels coupled with energy storge systems. Eventually, by carefully analyzing
energy demands, financial decisions, and budgeting scenarios, we considered a
grid-connected system to be favorable for our residential needs given the suitability
for zones and areas in th landscape of our environment.