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Key Factors for Each are Listed Below:
01
Cost of Generation
- Upfront capital cost for equipment and installation
- The expected lifetime of the equipment
- Annual maintenance and operation cost
- Fuel cost (if any)
02
Value of Generation
- The total energy output of the generator per year
- The value of exported energy to the grid and how it is compensated (connecting utility)
Temporary Incentives
- Tax Credits: The current investment tax credit (ITC) is 26%
- Depreciation: Accelerated depreciation of the capital investment
California Electricity Price Trends
Average retail rates, cents per kilowatthour

Source: U.S. Energy Information Administration Short-Term Energy Outlook, Jan 2021