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OPERATING COSTS WITH INFLATION
https://forum.pvsyst.com/viewtopic.php?f=25&t=4541
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Author:  DebbieBraide [ Sun Aug 25, 2019 6:23 pm ]
Post subject:  OPERATING COSTS WITH INFLATION

Please I would like to know how the operating costs with inflation is calculated. For example a project with OPEX of 100,000 GBP with lifetime of 5 years and inflation rate of 10%. What formula do you use to get the yearly OPEX?

Author:  hizir@pvsyst [ Tue Sep 03, 2019 9:18 am ]
Post subject:  Re: OPERATING COSTS WITH INFLATION

Hello,

The inflation rate is applied after first year :
OPEX year 1 : 100 GBP
OPEX year 2 : 100 + (100*10/100) = 110 GBP
OPEX year 3 : 110 + (110*10/100) = 121 GBP
OPEX year 4 : 121 + (121 *10/100) = 133 GBP
OPEX year 5 : 133 + (133 *10/100) = 146 GBP

Thus the average OPEX on project life is (100+110+121+133+146) / 5 = 122 GBP

Regards

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