Hello,

I have a question regarding the LCOE calculations and the total energy produced, including degradation. Which formula is used to calculate the total energy over the entire period?

When I calculate it manually using the following formula, I get a different price for the energy produced. I'm trying to understand where the discrepancy is.

Do you account for degradation only in the first year, or is it considered throughout the entire period?

Dear Liliana Heiduk,

Thank you for your inquiry.

Our online help explains how the levelised cost of energy (LCOE) is calculated:
https://help.valentin-software.com/pvsol/en/calculation/financial-analysis/

A linear or exponential progression can be taken into account for the degradation:

Otherwise you are welcome to send us your project file to hotline@valentin-software.com and we will take a look at it.