Calculating CAPEX and LCOE for Your PV Project
Last updated June 12, 2024
Introduction: Understanding the Capital Expenditure (CAPEX) and Levelized Cost of Energy (LCOE) is essential for evaluating the financial viability of your PV project. This guide outlines the steps to calculate these metrics using RatedPower’s tools.
Step-by-Step Instructions:
- Input Project Details:
- Log in to your RatedPower account and open your project.
- Navigate to the "Financials" section.
- Enter basic project details such as project size, location, and system configuration.
- Calculate CAPEX:
- Select the "CAPEX Calculation" option.
- Input costs related to equipment, installation, labor, and other project-specific expenses.
- Use the platform’s templates or input custom cost data to get an accurate estimate.
- Save the CAPEX calculation.
- Estimate LCOE:
- Go to the "LCOE Calculation" tab within the Financials section.
- Input relevant data such as total energy production, operational and maintenance (O&M) costs, and project lifespan.
- The platform will automatically calculate the LCOE based on the provided inputs.
- Review the LCOE results to assess the cost-effectiveness of your project.
- Analyze Results:
- Review both CAPEX and LCOE estimates to understand the financial implications of your PV project.
- Use these metrics to make informed decisions about project feasibility and financing options.
- Adjust project parameters if necessary to optimize costs and performance.
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