Your operating and maintenance cost of a PV system is $100, increasing at 3% per year...

 

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Your operating and maintenance cost of a PV system is $100, increasing at 3% per year and inflation is 5%. The system life is 25 years. a. What is the net present value of the O&M? b. You are offered a fixed O&M contract for $125 per year for the life of the system. To determine if this is financially beneficial, calculate the net present value of an annual value of $125 with an inflation rate = 5% and compare to the net present value from part a. Since this is a cost that you pay, you want the lower net present value. Your operating and maintenance cost of a PV system is $100, increasing at 3% per year and inflation is 5%. The system life is 25 years. a. What is the net present value of the O&M? b. You are offered a fixed O&M contract for $125 per year for the life of the system. To determine if this is financially beneficial, calculate the net present value of an annual value of $125 with an inflation rate = 5% and compare to the net present value from part a. Since this is a cost that you pay, you want the lower net present value.

Answer rating: 100% (QA)

a To calculate the net present value NPV of the operating and maintenance OM costs we can use the fo... View the full answer