Local manufacturing of solar water heating systems : a feasibility study

Abstract

The use of electrical power is causing irrevocable ecological and environmental damage to the earth's surface. Also, the shortage of oil and fuel is influencing negatively the overall energy situation. Consequently, governments are left with no other alternative but to impose heavy increases in the charges of electricity consumption. As a result, the use of renewable sources of energy, such as solar water heating, in replacement of fossil fuels is the only road left open to us. This study clearly demonstrates that as pioneers in manufacturing of solar water heaters locally, the company would obviously be in a more advantageous position when compared with importers on the local market. The primary objective of this study is to determine the viability (or otherwise) of this project. This analysis consisted of detailed costs and revenue consideration, together with contingencies for risk, relevant to this project. The results derived from this dissertation indicate that this project can be safely classified as financially viable and profitable. Still, this project was determined to be highly sensitive to revenue generated from its sales. As a result, it has been recommended that the proposed company should extend its market to neighbouring countries so as to increments its revenues. Finally, it should be stressed that apart from its financial benefits, due to its nature, the project should be highly appreciated as it will prove to be both an environmental, and an ecological achievement.