May 24, 2013

LCOE - the metric for solar PVs and renewables

Repost from Solar Professional by Tam Yates and Bradley Hibberd

Just what is LCOE?  It is the LEVELIZED COST OF ENERGY  and the standard metric for measuring internal and external comparison of solar energy with other energy sources.

It is defined by Thomas Holt and co. in a Manual for the Economic Evaluation of Renewable Energy Efficiency and Renewable Energy Technologies and compares the relative cost of energy irregardless of project size and and operating time frame.

Thus LCOE = Total life cycle cost/  total lifetime energy production.  Results are expressed as $/kwh or cents/kwh. 

The author warns though of using LCOE as the only measure to evaluate solar energy

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