A
annual worth - the annual value of a project after all of the cost components have been discounted to their equivalent annual values and the parts have been summed (when this value is positive, a project is normally adopted)
annuity - "an annual increment of cash flow related to a project" [1]
B
break even point - the point in time where the revenue of a project is equal to its costs
C
capital costs - initial investment and costruction costs
capital recovery factor (CRF) - the ratio of annuity to the present value to assess the "relationship between cash flow and investment cost" [1] (typically applied to projects with lifetimes less than 10 years)
carbon sequestration - keeping carbon in a separate reservoir from the atmosphere for geologically significant periods of time
cash flow diagram - an illustration of cash flow throughout the lifetime of a project
concentration ratio- in concentration solar, the area of the collector divided by the area of the absorber (this should be greater than 1)
constant year-Y dollars - "dollars expressed in real purchasing power using a particular year as the base or standard of comparison, in contrast to current dollars" [2]
Consumer Price Index (CPI) - "a statistical measure of a weighted average of prices of a specified set of goods and services purchased by typical consumers in urban areas" [2]
current dollars - the value that year in unadjusted dollars
D
diffuse transmission (of light) - "light is diffused by refraction and aerosols in the atmosphere, and some portion of the diffused light continues to travel foward toward the earth and strikes the surface. This diffuse light can strike the earth at a range of different angles" [1] (see also direct transmission (of light) and global insolation)
direct benefits - "revenues from selling products or services" [1]
direct costs - costs that are a result of system operation
direct cost support - "the government pays the seller of energy equipment or energy products part of the selling cost, so that the buyer pays only the cost remaining" [1]
direct transmission (of light) - "light is transmitted throught the atmosphere without interference" [1] (see also direct transmission (of light) and global insolation)
discount rate - the rate at which money's value declines over time that includes inflation and interest rates, but not opportunity costs
E
external benefits - revenues that go to a third party
external costs - costs caused by the system, but are not the responsibility of the system to pay (e.g. employee health care)
F
G
geometric concentration ratio (Cg) - In concentrating solar power, the ratio of the concetrator (aperture) area, Ac, to the receiver/absorber area Aabs:
global insolation - the sum of diffuse and direct light transmission (the total light from the sun that hits the surface of the earth)
H
I
in real terms - costs compared in current dollars (inflation has no affect on the comparison)
inflation - "a sustained increase in the average of all prices and goods and services in an economy" [2]; calculated from the Consumer Price Index and the Producer Price Index
insolation - "solar energy reaching a given location on earth" [1]
interest rate - the "percent return on an investment" or the "percent charged on a sum of money borrowed" [1]
interest rate buydown - in the case of a loan, the government subsidizes the interest on the loan
internalized - when external benefits and costs are treated as direct in the analysis of a project
irradiance - Power from the sun (W/m2)
irradiation - Energy from the sun (Wh/m2)
J
Julian Date - "the day number of the year from the Julian Calendar (e.g. January 1st is day 1, December 31st is day 365)" [1]
K
L
levelized costs - an analysis by which two or more similar products or services can be compared by calculating the ratio of the annual costs to the annual output
M
minimum attractive rate of return (MARR) - "the minimum interest rate required for returns from a project for it to be financially attractive" [1], set by the individual or group making the investment
N
net present value (NPV) - the sum of the capital costs, annuities, and salvage values of a project (used in the simple payback analysis)
O
opportunity cost - the cost of a forgone alternative lost in order to pursue the current action
P
present worth - all the aspects of a project are coverted into current dollars to find its present value
Producer Price Index (PPI) - "a statistical measure of a weighted average of prices of goods and services that firms produce and sell" [2]
Q
R
running costs - annual operation and maintenance, fuel, waste disposal, etc.
S
salvage value - decommissioning costs
simple payback - sum of all of the costs into and out of a project; calculated by the net present value
solar constant - "the intensity of energy arriving from the sun in spae just outside the earthy's atmosphere and is approximately 1367 W/m^2" [1]
solar multiple - solar energy collected (as designed) divided by the amount of energy required to generate the rated power.
T
tax credits - a reduction in the tax payments required by an individual or company granted by the government
time value of money - "the change in the value of money over time" [1] due to inflation and the expected return on investment
time preference of money - money is worth more now than in the future
U
V
W
X
Y
Z
References:
1) Vanek, Francis M. and Albright, Louis D., Energy Systems Engineering - Evaluation and Implementation, McGraw Hill, New York, 2008.
2) Miller, Roger LeRoy. Economics Today - the macro view, Pearson Addison Wesley, Boston, 2006.
3) McEachern, William A., Microeconomics - A Contemporary Introduction, Thomson South-Western, Australia, 2006.
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