Assumptions and the Levelized Cost of Energy for Photovoltaics
|Title||Assumptions and the Levelized Cost of Energy for Photovoltaics|
|Publication Type||Journal Article|
|Year of Publication||2011|
|Authors||Darling, SB, You, F, Veselka, T, Velosa, A|
|Journal||Energy and Environmental Science|
Photovoltaic electricity is a rapidly growing renewable energy source and will ultimately assume a major role in global energy production. The cost of solar-generated electricity is typically compared to electricity produced by traditional sources with a levelized cost of energy (LCOE) calculation. Generally, LCOE is treated as a definite number and the assumptions lying beneath that result are rarely reported or even understood. Here we shed light on some of the key assumptions and offer a new approach to calculating LCOE for photovoltaics based on input parameter distributions feeding a Monte Carlo simulation. In this framework, the influence of assumptions and confidence intervals becomes clear.