The replacement cost is the cost of replacing a Component at the end of its lifetime, as specified by Lifetime parameter in the Component model. This cost can be different than the initial capital cost for several reasons:
•Not all of the Components require replacement at the end of their lives. For example, the wind turbine nacelle might need replacement but the tower might not.
•The initial capital cost might be reduced or eliminated by a donor organization, but the replacement cost might not be reduced.
•You might want to account for the fixed costs (e.g., travel cost) of a visit to the site. At initial construction, these costs are shared by all Components, but at replacement time they might not be shared.
•You might want to account for a reduction over time in the purchase cost of a particular technology.
Important: The replacement cost is not meant to account for inflation. All costs in HOMER are real costs, defined in terms of constant dollars. For more information, see the Real Discount Rate section of the help.
Replacement cost is abbreviated as Repl. in HOMER's cost input tables.