Suppose that a report shows that, for a given year, the levelized cost of energy (LCOE) of new construction projects is expected to be $0.0545 per kWh for solar energy and $0.0995 per kWh for geothermal energy. Which form of energy has a better LCOE?(1 point)

Question

Responses

geothermal energy, because the dollar amount per kWh is higher
geothermal energy, because the dollar amount per kWh is higher

solar energy, because the LCOE implies lower capital and operating costs
solar energy, because the LCOE implies lower capital and operating costs

solar energy, because the dollar amount per kWh is lower
solar energy, because the dollar amount per kWh is lower

geothermal energy, because the LCOE implies higher total production

Answer 1

The correct response is:

solar energy, because the dollar amount per kWh is lower.

Since the LCOE of solar energy ($0.0545 per kWh) is lower than that of geothermal energy ($0.0995 per kWh), solar energy has a better LCOE. Lower LCOE indicates more cost-effective energy production.