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.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 14E

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