Using the following assumptions calculate the levelized cost for each technology:

Solar Farm Capital Cost ($/MW) $1,000,000

Solar Farm Fixed Cost $/Year $50,000

Solar Capacity Factor 20%

Solar Useful Life (years) 25

Wind Farm Capital Cost ($/MW) $1,200,000

Wind Farm Fixed Cost $/Year $75,000

Wind Capacity Factor 35%

Wind Useful Life (years) 20

Discount Rate 10%

Assume 50 MW of installed capacity for both the wind farm and the solar farm.

a) What is the levelized cost of wind and solar?

b) How do the levelized costs of wind and solar calculated here relate to their capture prices?