Economic Optimization of Heatpump Assisted Solar Heating in Illinois

This study undertakes the task of determing the optimal mix of solar and heat pump forms of heating. By installing a solar heating system a homeowner is considered to be an energy producer and thus to apply the least cost methods used by firms in the competitive market for any given level of fuel conservation. The study will examine the simulated performances of air and liquid circulating systems in conjunction with heat pumps, in parallel as well as combined fashion. Optimization is achieved by equating the present value of the cost of solar and heat pump heating systems at margin