An analysis of the cost index of renewable energy production in Iran ‎(Case study: home scale photovoltaic power plant)‎

Renewable energy plays significant role in achieving energy savings and emissions reduction. As a ‎sustainable and environmental friendly renewable energy source, solar photovoltaic (PV) is of ‎interest for research and development. However, the cost of PV generation and determining FIT ‎based on it is a factor hampering the commercialization of this emerging industry. This paper uses a ‎mathematical model of the levelized cost of energy (LCOE) to calculate the power generation cost ‎of PV projects on the basis of lifetime cost structure analysis. The minimum amount of guaranteed electricity purchase is calculated by it.A sensitivity analysis is conducted to ‎examine the impact of different variables on the LCOE of PV projects. The results of sensitivity ‎analysis showed that the capacity factor is the most influential variable in determining the LCOE ‎value. This research provides support for government to formulate incentive policies for the ‎industry And thus offers the development of the use of renewable energy.