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Cost Estimation
Cost Estimation
Like most renewable energy power generation technologies photovoltaic systems are capital intensive, but have no fuel costs which promote attractive annual O&M expenses. There are many factors to be weighed during the decision-making process for your renewable energy investment. While the Levelized Cost of Energy (LCOE) plays a significant role long after you have achieved your return on investment, driving down your project’s LCOE to its lowest achievable rate starts long before wrenches are ever turned. The process begins with an accurate cost estimation that facilitates financial modeling, final engineering and product specification.
The three key drivers of a PV system’s LCOE are:
Capital & installation costs of PV modules and Balance of System (BOS)
Average annual energy production (kWh/KWp/Yr)
Cost of finance
Solar Energy Services will develop a comprehensive cost estimate examining these top two drivers. Components of the Preliminary System Layout, Solar Resource Assessment, and Energy Prediction Report contribute to technology and product selection. This report will identify:
1. Photovoltaic cell technology and product availability
2. Module pricing and delivery lead time
3. Inverter technology, pricing and delivery lead time
4. System mounting technology, pricing and delivery lead time
5. Balance of system components pricing and availability
6. AC electrical component pricing
7. EPC integration expenses