John Ryden is an Engineer with a background in Finance and Economics. Here he will discuss how energy production, energy use, and conservation affect us and the rest of the world with a focus on the economic implications.
Adding solar cells to any electric car will reduce the cost to operate the car and reduce consumption of oil. It can also make economic sense.
Toyota announced that they would be adding solar cells to their popular Prius electric hybrid. The intention is to use the solar cells to power the air conditioner. It would be better to have the solar cells recharge the battery, although a large enough battery for the plug-in Prius may have to wait until 2010.
Let’s assume that Toyota puts solar cells with 200 watts of power on the car. With 6 hours of charge time, the battery could gain 1.2 KW hours of power. That amounts to equivalent of about 1/10th gallon of gasoline. Assuming $4 per gallon for gasoline, that provides a payback of $0.40 per day or $146 per year. Assuming that the solar cells cost an extra $2,000 then the rate of return on the solar cells is 7.3%, and you are making a small contribution to cleaning up the environment. The solar cells may be eligible for a tax credit, which would make the rate of return higher.
Let’s say you use your Prius to commute to work 15 miles each way. Let’s also assume that you can charge the 1.2 KWh battery at home before you leave and that you travel slow enough to use the entire 1.2 KWh of power on the 15 mile trip to work. The car gets about 50 mpg so the battery could power 1/3 of the trip. On the trip to work you get 75 mpg. On the way home, the solar panels recharge the battery and you again get power for 1/3 of the trip. You get 75 mpg on the way home. You save 1/10th of a gallon of fuel. If you didn’t recharge at work you would burn 0.5 gallons netting 60 mpg.
Shorter trips with longer stays would produce higher gas mileage while longer trips would produce gas mileage closer to 50 mpg.
Solar cells on cars make more cents than solar cells on houses. On a house you are replacing utility power at a rate of 8 cents to 15 cents per KWh. Replacing gasoline for 40 cents (or higher) produces a greater economic return. The rate of return for putting solar cells on cars is great enough to justify demand without incentives, which should be good news for the solar cell manufacturers. This would be particularly true for solar companies that make very efficient solar cells as surface area on the car is limited.
President Bush signed the bill authorizing $25 billion in loan guarantees to the auto industry. U.S. auto companies are being hammered by high gasoline prices, weak consumer spending, the credit crisis, and tough competition from foreign imports.U.S.... Read More Topics:
Global Warming ,
oil ,
gasoline ,
GM ,
consumption tax ,
John dingell ,
loan guarantee
Hugo Chavez, president of Venezuela, is currently in China making deal to supply China with up to 1 million barrels of oil per day by 2011. Under the agreement, China will invest $4 billion in Venezuela’s oil industry to secure this supply of oil.... Read More Topics:
China ,
oil ,
ExxonMobil ,
Mexico ,
offshore drilling
NASA reported that Arctic sea ice reached its lowest extent for the year on September 16th. Each year the sea ice cover contracts during the summer and then grows again during the winter. The maximum extent is in March of each year.This year the sea... Read More Topics:
Global Warming ,
Greenhouse ,
Arctic ,
Methane
Damage in Florida from Hurricane Andrew in 1992The amount of damage from Hurricane Ike is going to total in the tens of billions of dollars. I have seen estimates where the insured costs are likely to be as high as $20 billion.This is going to be... Read More Topics:
hurricane ,
hurricane ike
Hurricane Ike has moved out of Texas, but left a wake of destruction in its path. It appeared that the hurricane started moving North just before landfall. This moved the eye right over Galveston. I was watching some of the Fox live coverage with Geraldo... Read More Topics:
Global Warming ,
hurricane ike
Hurricane Ike is heading towards Galveston, Texas. The storm is a Category 2 storm, very close to Category 3 strength. The storm is huge. Hurricane force winds extend up to 120 miles from the center. Tropical Force winds extend out to 275 miles.The potential... Read More Topics:
Global Warming ,
hurricane ,
ike
CNG-NOW!Chesapeake Energy Corporation is promoting the use of compressed natural gas (CNG) as an alternative to gasoline in cars. Chesapeake Energy Corporation is the second-largest independent producer and third-largest overall producer of natural gas... Read More Topics:
Global Warming ,
Bush ,
Carbon Dioxide ,
natural gas ,
natural gas vehicle ,
CNG
Democrats in Congress have been put on the defensive by the electorate who collectively seem to understand that we need to develop our country’s oil and natural gas resources. The idea that not drilling off-shore will somehow solve our energy... Read More