Comprehensive lifecycle cost components
A full lifecycle cost (LCC) assessment goes beyond capital expense to include all costs over the system's operational life, typically 10–25 years. Include the following:
- Capital expenditure (CapEx): Equipment, site preparation, installation, and commissioning.
- Operating expenditure (OpEx): Energy (if any), consumables (chemicals, membranes), routine maintenance, and labor.
- Replacement costs: Membranes, batteries, pumps, and other components with finite lifetimes.
- Spare parts and logistics: Shipping and storage of critical spares, especially in remote areas.
- Monitoring and management: Data services, control systems, and possible subscription fees.
- Brine management costs: Disposal, treatment, or transport expenses.
- Decommissioning and disposal: End-of-life costs for PV panels, batteries, and other components.
- Financing costs: Interest payments, loan fees, and insurance.
Benefits and revenue:
- Include avoided costs (e.g., diesel fuel savings), potential revenue from water sales, and any incentives or carbon credits.
LCC analysis helps compare different technologies on a like-for-like basis by accounting for long-term costs and benefits rather than just upfront price.