Consider the price/tariff applied to electricity bills of a household is SAR 0.18/kWh for the next 10 years and after that it will be SAR 0.30/kWh. Assuming the discount rate is 3%/yr. What is the levelized cost of utility electricity for this household ($/kWh) over the next 20 a. years? b. 'Suppose the homeowner considers purchasing a rooftop photovoltaic (PV) system that costs SAR 13,000 and delivers 5700 kWh/yr. Assume there is only additional cost of SAR 2500 to change the system's battery after 10 years and no O&M costs for 20 years. Compare the LCOE ($/kWh) for utility power versus this solar PV system, over the time horizon of 20 years.

Consider the price/tariff applied to electricity bills of a household is SAR 0.18/kWh for the next 10 years and after that it will be SAR 0.30/kWh. Assuming the discount rate is 3%/yr. What is the levelized cost of utility electricity for this household ($/kWh) over the next 20 a. years? b. 'Suppose the homeowner considers purchasing a rooftop photovoltaic (PV) system that costs SAR 13,000 and delivers 5700 kWh/yr. Assume there is only additional cost of SAR 2500 to change the system's battery after 10 years and no O&M costs for 20 years. Compare the LCOE ($/kWh) for utility power versus this solar PV system, over the time horizon of 20 years.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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