Statistical Analysis for Solar Installation

Memorandum

From:  

To: Bill Owen, CEO of Solar Solutions Inc, California

Date:

RE:  Statistical analysis for solar installation

Dear Bill,

This is to bring your kind attention to our recent statistical study to determine how much solar panel can be reduced energy consumption in a typical middle class home. We have found out from our study that there is potential energy savings from solar power. After the solar panels were installed, the gas consumption had been reduced. Please find below our findings and conclusions on this based on the statistical data which is pictorially represented in the appendix.

Conclusion:

1. There is a very strong, negative, and linear correlation between gas consumption and outside temperature.
2. After solar panels installation there is a change in R2 value, from 99.1% to 98.2%, this shows that solar panels installation affects the gas consumption.
3. The amount of gas used is decreased after solar panels installation
4. Gas saving in $ ➔ Gas used is reduced by 217.3 feet3 or 16.255 gallons after solar panels installation. Assume that the cost of gas is $3.45/gallon, thus $56.07 can be saved by installing solar panels.