ECONOMIC ASSESSMENT OF THE SOLAR-ENERGY SYSTEM USING LIFE CYCLE COST ANALYSIS

As the use of new and renewable energy is one of the ways by which the exhaustion of fossil fuels and the other existing environmental problems can be addressed, a policy of spreading information regarding it and of conducting R&D related to it is currently being implemented in advanced countries. In the construction field, the concept of "green building" was born, and the application of this concept has increased, with the end in view of achieving energy savings, resource savings, and recycling, and of conserving the natural environment. In this context, the government of Korea amended the "Law on the Development, Use, and Promotion of New and Recycled Energy" in 2004, which contains 11 provisions related to new and renewable energy and their sources, including solar and geothermal energy as well as sunlight, water, rainfall, and organisms. Since solar-energy should be used instead of fossil fuels by converting sunlight directly into electricity, many researches on this subject are in progress. There are few researches, however, employing the economic approach to the subject. Thus, in this study, an economic assessment of the solar-energy system was conducted using both life cycle cost (LCC) analysis and sensitivity analysis. The results of the LCC analysis show that the solar-energy system will become economically better than the fossil fuel system after 16 years, although the initial construction cost of the solar-energy system is higher than that of the fossil fuel system. The results of this study are expected to be used in selecting an eco-friendly and economical solar-energy system when the construction of a green building is planned.