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Table 2.3-2 lists the financial assumptions used to calculate the LCOE values presented in this Multi-Year Program Plan. The financial assumptions are typical values for a project using fully commercialized solar technology in 2005. These assumptions were used in the analysis of each reference system to provide a consistent basis for comparing the impact of different TIOs on LCOE. By comparing the LCOE of a reference system calculated using different technology improvement scenarios under the same financial assumptions, the relative value of each TIO was determined. LCOE is very sensitive to variations in the financial parameters, so for calculations of an absolute LCOE value for specific projects, it is critical to use financial assumptions that reflect actual project costs. However, in the analysis for this plan, it was more critical that the financial assumptions be consistent across reference systems so that the relative LCOE values reflected the relative value of different R&D options. Note that many incentives, including federal tax credits, are currently available. These incentives were not considered when calculating LCOE from solar systems in this plan because of the following: • State and local incentives vary from place to place • Federal credits are scheduled to end in 2007, which is before the 2011 target for this plan. Table 2.3-2 Financial Assumptions 2.4 Program Performance Measurement and Assessment Preparation of this Multi-Year Program plan is the first application of the systems-driven approach to Solar Program planning and optimization. A key part of the SDA is benchmarking, which establishes the current state of the progress and verifies progress. Benchmark data also provides validated input to the SDA models and is used to validate model 18PDF Image | Solar Energy Technologies Program
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