FINAL PRODUCT

Feasibility Study on Roof Mounted Solar Panels

as a source of power supply to replace the pole mounted power supply distribution system
TECHNICITY 2013 CLASS FINAL PROJECT
Engr. Candido R. Talosig, Jr.
1. BEFORE THE PROJECT

The photos of my city which I personally took this May 2013 showed power cable lines hovering
unsafely over my city endangering the lives of residents, pedestrians and motorists as well as
the people who like to visit and tour my city. This pole mounted power cable lines are not
aesthetically appealing and they obstruct the beautiful view of my city. And as such I explored
the use of affordable roof mounted solar panels as an alternative to pole mounted power cable
lines in order to change and transform the view and the landscape of my city and make it
aesthetically better as well as make it environmentally sustainable.
2. EXPECTED AFTER THE PROJECT :

Picture from : http://paulblacks.com/

The affordable roof mounted solar panel will be the source of power to supply the average
monthly electricity consumption of 130 kWh per household in the City of Pasig, Philippines, and
to replace the pole mounted power supply distribution system in order to eliminate the power
cable lines hovering unsafely on poles posing danger to life and properties, will reduce the cost
of power generation, transmission, distribution and system loss, cost on universal charges for the
environmental fund, will reduce maintenance cost of power distribution, will reduce power
interruptions, will improve the view and the urban landscape of the city and it is an
environmentally sustainable green technology.

3. IMPROVEMENT :
Solar panels will be fitted aesthetically and will be installed on the roof and, if applicable, on the
walls of all the residential homes, condominiums and apartments, commercial establishments,
government and office buildings in Pasig City, Philippines as a source of an environmentally
sustainable green technology in power supply in order to replace the pole mounted cable lines
distribution system of power supply which poses as a daily danger and inconvenience to
residents, pedestrian and motorists as they unsafely hover on every street and street corners.
4. RESULT OF THE IMPROVEMENT :
The affordable roof mounted solar panel will replace the pole mounted cable line distribution
system of power supply, will improve the view of the city and the urban landscape in an
environmentally sustainable green technology which will further result in savings in the cost and
maintenance of power distribution as follows:
YEAR

ANNUAL SAVINGS IN THE COST OF POWER SUPPLY per household

(includes cost in power generation, transmission, system loss and
distribution plus universal charges for the environmental fund) In
Philippine Peso

1
2
3
4
5
6
7
8
9
10

5. IMPROVEMENT COST

18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48

The improvement cost is estimated to be 1,890,000.00 Philippine peso per household at 2013
price level.
6. IMPROVEMENT MAINTENANCE COST

The improvement maintenance cost is estimated to be 2,000.00 Philippine peso per annum per
household at 2013 price level.

7. DETERMINATION OF COSTS

7.1 Initial Cost

: 1,890,000.00 Philippine Peso (Panel plus Installation) per household
7.2 Maintenance Cost :
2,000.00 Philippine Peso per annum (battery and cleaning) per
household

8. DETERMINATION OF BENEFITS :
8.1 Annual Benefits due to Safety and Increase in Income
Assumption:
1. Benefits will start on the second year, YEAR 2, increasing annually at the rate of 25%.
2. Benefits will level off on the 9th and 10th year, YEAR 9 and YEAR 10.
YEAR
1
2
3
4
5
6
7
8
9
10

ESTIMATED ANNUAL BENEFITS in Philippine Peso

0.00
200,000.00
250,000.00
312,500.00
390,625.00
488,281.25
610,351.56
762,939.45
953,674.32
953,674.32

8.2 Annual savings in the Cost of Power Supply :

YEAR

1
2
3
4
5
6
7
8

ANNUAL SAVINGS IN THE COST OF POWER SUPPLY per household

(includes cost in power generation, transmission, system loss and
distribution plus universal charges for the environmental fund) In
Philippine Peso
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48
18,705.48

9
10

18,705.48
18,705.48

9. COMPUTATION OF NET PRESENT VALUE (NPV) :

Assumption: The opportunity cost of capital is 15%.
Total Benefits = Annual Savings in the Cost of Power Supply plus Estimated Annual Benefits
Year
1
2
3
4
5
6
7
8
9
10

Total Benefits
Cost
Benefits - Cost
at 15%
Discounted
18,705.48
2,000
16,705.48
0.87
14,526.50
218,705.48
2,000
216,705.48
0.76
163,860.48
268,705.48
2,000
266,705.48
0.66
175,363.18
331,205.48
2,000
329,205.48
0.57
188,224.30
409,330.48
2,000
407,330.48
0.50
202,515.24
506,986.73
2,000
504,986.73
0.43
218,319.70
629,057.04
2,000
627,057.04
0.38
235,733.97
781,644.93
2,000
779,644.93
0.33
254,867.31
972,379.80
2,000
970,379.80
0.28
275,842.50
972,379.80
2,000
970,379.80
0.25
239,863.04
SUM
1,969,116.23

NPV = SUM less Initial Cost

NPV = 1,969,116.23 1,890,000.00
NPV = 79,116.23 > 0, PASSED
Criteria for NPV : If NPV > 0, pass
If NPV < 0, Fail
10. COMPUTATION OF INTERNAL RATE OF RETURN (IRR)

Year
1
2
3
4
5
6
7
8
9
10

Total Benefits
Cost
Benefits - Cost
at 15%
18,705.48
2,000
16,705.48
0.87
218,705.48
2,000
216,705.48
0.76
268,705.48
2,000
266,705.48
0.66
331,205.48
2,000
329,205.48
0.57
409,330.48
2,000
407,330.48
0.50
506,986.73
2,000
504,986.73
0.43
629,057.04
2,000
627,057.04
0.38
781,644.93
2,000
779,644.93
0.33
972,379.80
2,000
970,379.80
0.28
972,379.80
2,000
970,379.80
0.25
SUM

Discounted
Discounted
15%
at 20%
20%
14,526.50
0.83
13,921.23
163,860.48
0.69
150,489.92
175,363.18
0.58
154,343.45
188,224.30
0.48
158,760.36
202,515.24
0.40
163,696.98
218,319.70
0.33
169,119.03
235,733.97
0.28
175,000.11
254,867.31
0.23
181,320.49
275,842.50
0.19
188,066.11
239,863.04
0.16
156,721.75
1,969,116.23
1,511,439.44

NPV
IRR
Criteria : computed IRR > opportunity cost of capital, PASSED

11. COMPUTATION FOR BENEFIT COST (BC) RATIO

Year
1
2
3
4
5
6
7
8
9
10

79116.23
16.73 > 15%,

Total Benefits
at 15%
Disc. Benefits
Cost
Disc. Cost
18,705.48
0.87
16,265.63
2,000
1,739.13
218,705.48
0.76
165,372.76
2,000
1,512.29
268,705.48
0.66
176,678.21
2,000
1,315.03
331,205.48
0.57
189,367.81
2,000
1,143.51
409,330.48
0.50
203,509.59
2,000
994.35
506,986.73
0.43
219,184.35
2,000
864.66
629,057.04
0.38
236,485.84
2,000
751.87
781,644.93
0.33
255,521.12
2000
653.80
972,379.80
0.28
276,411.03
2000
568.52
972,379.80
0.25
240,357.41
2000
494.37
SUM
1,979,153.77 SUM
10,037.54
BC
RATIO

1.04

> than 1

Criteria for Benefit Cost (BC) Ratio : PASSED

If BC > 1, pass
If BC < 1, fail
Therefore, the project is FEASIBLE.

12. STRENGTH, WEAKNESS, OPPORTUNITY AND THREAT (SWOT) ANALYSIS

STRENGTH

1. The project is feasible

2. Promotes an aesthetically appealing view for the urban landscape
3. Environmentally sustainable, less carbon dioxide emission in power generation, less
radiation and electromagnetic energy, and it provides more breathable space constricted by
pole mounted power cable lines
4. Reduces the Cost of Power Supply
5. No power Interruption

-378560.56

6. Safer than the pole mounted power cable lines distribution system and the Nuclear Power
Plant
7. Low maintenance cost compared to maintaining pole mounted power cable lines
8. Materials can be recycled
WEAKNESS

1. Less government support and it is not a funding priority at present

2. Needs foreign funding
3. Needs legislation to implement and phase out the pole mounted power supply distribution
system
4. Needs private initiative
OPPORTUNITY :
1. To conduct an information and education campaign to gather support
2. To pass a green technology and an environmental power supply legislation in addition to the
Clean Air Act of the Philippines, to get financing and to get support from the government
3. An Investment opportunity for private investors
4. For Research and Development
5. To save the Ozone layer of the Earth
6. To be creative in master planning a city
7. To maximize the solar energy
THREAT

1. Opposition from established power suppliers and distributors

2. Opposition from Investors of the established power suppliers and distributors due to
possible loss in revenues and profits
3. The job security of the officers and employees of these established power supply system