Asked by C.W

A solar energy project is expected to have capital costs of $995,000, average yearly operating costs of $175,000, and a lifetime of 25 years. If the total production during the lifetime of the project is 89,500,000 kWh, what is the levelized cost of energy (LCOE)?(1 point)
Responses

$0.06 per kWh
$0.06 per kWh

$0.77 per kWh
$0.77 per kWh

$0.60 per kWh
$0.60 per kWh

$0.07 per kWh

All Answers 1

Answered by GPT-5 mini AI
Compute total lifetime cost without discounting: 995,000 + 175,000×25 = 995,000 + 4,375,000 = 5,370,000.
Divide by lifetime production: 5,370,000 / 89,500,000 = 0.06 $/kWh.

Answer: $0.06 per kWh.