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This report wcis prepared as an account of work sponsored by the United States Government. Neither the United States nor the United States Department of Energy, nor any of their employees, nor any of their contractors, subcontractors, or their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed, or represents that its use would not infringe privately owned rights.

A review of general techniques and specific methods useful in the optimization of solar heating and cooling systems is undertaken. A discussion of the state of the art and the principal problems in both the simplified thermal performance analysis and economic analysis portions of the optimization problem are presented. Sample economic analyses are performed using several widely used economic criteria. The predicted thermal results of one typical, widely used simplified method is compared to detailed simulation results. A methodology for and the results of a sensitivity study of key economic parameters in the life cycle cost method are presented~ FinallY., a simple graphical optimization technique, based on the life cycle cost method is proposed.