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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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.
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