Measurement
In energy terms, project lifetime refers to the expected operational lifespan of a power project, during which it can reliably generate energy. For example, a solar PV project typically has a lifetime of 25 to 30 years, which is often tied to warranty periods for panels and inverters, and the time frame used in financial models. Over a project’s lifetime, components may degrade (panels lose efficiency, equipment may need replacement) and maintenance is required. Project lifetime is important in investment analysis because it determines how long the asset will produce revenue and influences metrics like NPV and LCOE, which spread costs over the system’s useful life.