Exergetic, environmental and economic analyses of small‐capacity concentrated solar‐driven heat engines for power and heat cogeneration

SUMMARY In this paper, the exergy interactions, environmental impact in terms of CO2 mitigation, and the economics of small-capacity concentrated solar power-driven heat engines for power and heat generation are analysed for residential applications. Starting from a base case study that assumes mass production in Ontario, it is shown that the investment in such a system, making use of a heat engine and having 9 m2 of aperture area, could be about CN$10 000 for a peak electrical efficiency of 18% and thermal efficiency of 75%. The average CO2 mitigation due to combined savings in electricity and heat is ∼0.3 kgCO2 kWh−1, a figure 3–4 times larger than for photovoltaic panels. If 25% government subsidy to the investment is provided, the payback period becomes 21.6 years. Additionally, if the financing benefits from a feed-in-tariff program (at 25% electrical sell-back to the grid) and deductions from CO2 tax are realized, then the payback time drops to 11.3 years. These results are obtained for a conservative scenario of 5.5% annual incremental increase in energy price. For the moderate consideration of all factors, it is shown that within the financial savings over the entire lifecycle, 7% are due to carbon tax, 30% are due to electrical production and the largest amount, 63%, is the result of reducing the natural gas heating capacity with solar heating from the proposed system. Copyright © 2011 John Wiley & Sons, Ltd.