Investors in the PV solar industry have worked to properly understand and price their solar projects, and thus determine the return on their investments. The PV solar industry has responded by moving the pricing discussion from a capacity basis to an energy generation basis. IE they have moved from a cost per watt conversation to a cost per kilowatt-hour. The cost of this energy generation is usually represented by an estimated “levelized cost of electricity” or “LCOE”. Yet, since the real purpose of the LCOE is to help price projects, it helps to be clear on what assumptions to have built into your LCOE. Otherwise, you may not have properly calculated your cost versus revenues or understood the magnitude of the margin of error in the LCOE estimate. And this will not just damage your portfolio – it will damage your reputation.