Answer:
Step-by-step explanation:
Capital costs of the Solar Energy Project is expected at $ 995,000.
Average yearly operating costs are $ 175,000. The project is estimated to run for 25 years, producing a total 89,500,000 kWh.
LCOE = Levelized Cost of Energy = [tex]\dfrac{\text{Capital costs + (Average yearly operating costs)}\times\text{(Number of project years)}}{\text{Total Production}}[/tex]
LCOE = [tex]\dfrac{995,000+(175,000)\times(25) }{89,5000,000}=\dfrac{5,370,000}{89,500,000}=0.06\text{ }\frac{\$}{kWh}[/tex]
∴ Levelized Cost of Energy = $ 0.06 per kWh