Explain the following terms used for calculating the LCOE Levelized Cost of Electricity in the case of PV power.

A. Debt to equity ratio

B. Interest rate

C. Return on Equity

D. Discount factor

E. Levelized cost of electricity

Explain this using the norms used in accountancy subject for commercial costing analysis. If the debt-to-equity ratio is changed from normal 70:30 to 30:70 (reverse the ratio), what will happen to the LCOE? Give reasons for your answer. Hint: Remember the rate of interest vs the ROI return on investment expected by equity players and their impact on the LCOE