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) Responses $0.60 per kWh $0.60 per kWh $0.77 per kWh $0.77 per kWh $0.06 per kWh $0.06 per kWh $0.07 per kWh
To calculate the levelized cost of energy (LCOE), we first need to calculate the total cost over the lifetime of the project.
Total cost = Capital costs + (Average yearly operating costs x number of years)
Total cost = $995,000 + ($175,000 x 25)
Total cost = $995,000 + $4,375,000
Total cost = $5,370,000
Next, we need to calculate the cost per kWh:
Cost per kWh = Total cost / Total production
Cost per kWh = $5,370,000 / 89,500,000 kWh
Cost per kWh = $0.06
Therefore, the levelized cost of energy (LCOE) for the solar energy project is $0.06 per kWh.