Question

A solar energy project is expected to have capital costs of $995,000, average yearly operating costs of $175,000, and a lifetime of 25 years. If the total production during the lifetime of the project is 89,500,000 kwh, what is the levelized cost of energy (lcoe)?(1 point)

Answer 1

The Levelized Cost of Energy (LCOE) gotten from the given parameters is; $0.06 per kWh

How to find Levelized Cost?

We aregiven;

Capital costs of the Solar Energy Project = $ 995,000.

Average yearly operating costs = $ 175,000.

We are told that the project is estimated to run for 25 years, producing a total 89,500,000 kWh.

Formula for Levelized Cost of Energy is;

LCOE = (Capital Costs + (Average yearly operating Costs * Number of project years))/Total Production

LCOE = (995000 + (175000 * 25))/89500000

LCOE = $0.06 per kWh

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