A solar energy project is expected to have capital costs of $785,000, average yearly operating costs of $123,000, and a lifetime of 25 years. If the estimated yearly production of the project is 3,580,000 kWh, what is the levelized cost of energy (LCOE)?(1 point)
Responses
0.220
0.220
0.253
0.253
1.078
1.078
0.043
To calculate the Levelized Cost of Energy (LCOE), we need to consider both the capital costs and the average yearly operating costs over the lifetime of the project.
First, we need to calculate the total cost of the project over its lifetime:
Total cost = Capital costs + (Average yearly operating costs x Lifetime)
Total cost = $785,000 + ($123,000 x 25)
Total cost = $785,000 + $3,075,000
Total cost = $3,860,000
Next, we need to calculate the total energy production over the lifetime of the project:
Total energy production = Estimated yearly production x Lifetime
Total energy production = 3,580,000 kWh/year x 25 years
Total energy production = 89,500,000 kWh
Now, we can calculate the LCOE:
LCOE = Total cost / Total energy production
LCOE = $3,860,000 / 89,500,000 kWh
LCOE = $0.043/kWh
Therefore, the levelized cost of energy (LCOE) for this solar energy project is $0.043/kWh.
Correct answer: 0.043
ANSWER: 0.043
I accidentally mistyped the answer in my previous response, sorry!
The steps are still correct, the answer needed to be fixed.
ANSWER: 0.43
To find it:
3,580,000kWh/yr x 25 years <-- (This is essentially 3,580,000 x 25) = 89,500,000
785,000 + (123,000/yr x 25 years <-- (This is essentially 785,000 + (123,000 x 25) = 3,860,000
3,860,000/89,500,000 = 0.043128916201...
ANSWER: 0.43
Hope this helped :)