5 10 A Photovoltaic System That Generates 8000 Kwh Yr Costs 15 000 It Is Paid For With A 6 20 Year Loan A Ignoring 1 (37.4 KiB) Viewed 85 times
5.10 A photovoltaic system that generates 8000 kWh/yr costs $15,000. It is paid for with a 6%, 20-year loan. a. Ignoring any tax implications, what is the cost of electricity from the PV system? b. With local utility electricity costing 11¢/kWh, at what rate would that price have to escalate over the 20-year period in order for the levelized cost of utility electricity be the same as the cost of electricity from the PV system? Use Figure 5.4 and assume the buyer's discount rate is 15%.
4.0 n = 20 Years d=5%/yr 3.5 d = 10%/yr 3.0 d = 15%/yr 2.5 d=20%/yr Levelizing Factor 2.0 1.5 1.0 0.5 6 10 0.0 0 2 8 12 14 16 Annual Cost Escalation Rate (%/yr) Figure 5.4 Levelizing Factor for a 20-year term as a function of the escalation rate of a annual costs, with the owner's discount rate as a parameter. With a discount rate of 10%/yr and fuel escalation rate of 5%/vr. the levelized cost of fuel is 1.5 times the initial cost.
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