Costs in HOMER  


If my capital cost and my replacement cost for my battery are the same, why is my replacement cost much less of the cost summary after calculations. Also, why is the salvage value different to the one that I expect.


Battery Bank

Quantity:1            Capital cost:$70,000           Replacement cost:$70,000       Life Time: 15 Years             Project Life Time: 25 Years

Total Number of Batteries in Battery Bank: 27


HOMER Cost Summary for Battery Bank

Capital Cost ~ $1,890,000             Replacement Cost ~ $809,000            Salvage Value ~ $150,000


My Calculated Values

Capital Cost ~ $1,890,000             Replacement Cost ~  $1,890,000         Salvage Value ~ $630,000


When I use the equations that HOMER gives in the help file, I get different value to the ones in the cost summary.


Nomaanh, it is a bit more complicated than simply multiplying the replacement cost by the number of battery banks. The numbers are calculated using either annualized or net present cost formulas, depending on what you are drawing the numbers from.

There are 2 help articles that should help you understand how these formulas are calculated.

7.6 Annualized Cost
7.105 Net Present Cost

See if those help you understand how these values are calculated. If you cannot figure it out, you might find it reassuring that HOMER is probably right.


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