Calculate a Rough Solar LCOE
Calculate a simple LCOE screen and identify what the result excludes.
Screen a 600 kW solar canopy proposal: installed cost is $1,320,000, annual O&M is $18,000, expected first-year generation is 920,000 kWh, and the simple annualized capital recovery estimate is $54,000 per year before incentives. Simple LCOE = annualized cost divided by annual energy output, then annotate what the screen excludes. The common trap is to present the cents-per-kWh result as if it includes demand-charge timing, degradation, tax incentives, financing structure, certificate value, parking-lot shade benefits, inverter replacement, and resilience. The simple screen does not include those unless you put them in the model. Name the cost stream Annualized capital estimate:…
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