NRELs Cost of Renewable Energy Form

Instructions and help about NRELs Cost Of Renewable Energy

Let’s say you are working on the next big thing in solar energy. Maybe you’re a researcher, wanting to know how your technology fits into the current market. Or maybe you’re a manufacturer, trying to identify how to lower costs. For scenarios like these, minimum sustainable price, or MSP, is a useful metric to consider. Minimum sustainable price is exactly what it sounds like: it’s a price that provides the minimum rate of return necessary in a given industry to support a sustainable, business over the long term. Specifically, MSP is influenced by manufacturing costs, overhead costs, and other financial considerations, such as financing, discount rates, and tax incentives. Let’s take a closer look at manufacturing costs, also known as the “cost of goods sold." Understanding manufacturing costs can help identify the major cost drivers for a particular technology. Manufacturing costs include materials, labor, electricity, maintenance, equipment costs, and facilities. The next