Performance Evaluation of an Existing Renewable Energy System at Gilutongan Island, Cebu, Philippines

Table 2

Economic metric indicators.

Economic indicator	Definition	Expression	Equation no	References
Net present cost (NPC)	It shows the loss or profit during the project’s lifetime. It is the difference between the project’s overall cost (i.e., capital, replacement, operation, and maintenance costs) and expected revenue throughout its lifetime. The positive value indicates loss, while the negative value shows a profit. The higher the value, the higher the profit or loss		(9)	[40, 43]
Total annual cost (CTA)	It is the sum of the annual capital cost of the system components, the annual cost for the replacements of the system components, and the annual operating and maintenance cost	CTA = CC + CR + COM	(10)	[43, 49]
Capital recovery factor (CRF)	The capital recovery factor (CRF) converts the initial investment cost to the annual capital cost		(11)	[43, 49]
Levelized cost of energy (LCOE)	It is the total cost of the generated electrical energy from the PV system in $/kWh over its lifetime		(12)	[42, 43, 49]
		Simple payback period (PB)			The number of years it takes to recover the initial investment cost by earnings after interests and taxes		(13)	[43, 57]