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

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

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

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.

This is because a lower levelized cost of energy (LCOE) indicates that it is less expensive to generate electricity from that energy source. In this case, $0.0545 per kWh for solar energy is lower than $0.0995 per kWh for geothermal energy, making solar energy the better option in terms of LCOE.