Economics of installation of an active solar heating system

The American University of Armenia recently installed a shower system in the ground floor of its building. In this article we examine the economic viability of using an active solar system to heat the showers. Using conventional discounted cash flow analysis as well as two other economic assessments of the capital investment, we demonstrate that it is economically justifiable to invest in a solar heating system on the basis of the anticipated savings in heating costs over the lifetime of the system.