Suppose: Average Electricity Consumption of Fossil Fuel: 3,833kWh per year. Average Electricity Rate: 26.3 usd/kWh. Price Level is the Same for Next 30 years. The System Size of New Solar Installation: 5kW Capacity factor: 13.7% Duration: 30 years Electricity Output Drop Every Year: 0.5% 30% of Solar Output is Used 70% is Sold Revenue: 17 usd/kWh for the First 10 years 9.5 usd/kWh for the Following 20 years. Initial Cost of Solar Installation is 280,000 usd per kW ( 5

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Suppose: Average Electricity Consumption of Fossil Fuel: 3,833kWh per year.

Average Electricity Rate: 26.3 usd/kWh.

Price Level is the Same for Next 30 years.

The System Size of New Solar Installation: 5kW Capacity factor: 13.7%

Duration: 30 years

Electricity Output Drop Every Year: 0.5%

30% of Solar Output is Used 70% is Sold

Revenue: 17 usd/kWh for the First 10 years

9.5 usd/kWh for the Following 20 years.

Initial Cost of Solar Installation is 280,000 usd per kW ( 5kW system costs 5 times 28,000 usd)

Maintenance Cost Every 4 Years: 29,000 usd.

Component Replacement Cost Every 20 Years: 224,000 usd.

Calculate the Levelized Cost of Electricity (LCOE) at Discount Rates at 2%. Show work. 

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