## 2 Materials and Methods
### Economic Parameters  
HOMER enables users to assess system feasibility by simulating multiple configurations while incorporating economic considerations. HOMER evaluates various financial criteria in this analysis, accounting for all associated costs and revenues. Additionally, it integrates key constraints such as grid tariffs, fuel price fluctuations, and financing options to ensure a comprehensive economic assessment. The most crucial parameter in HOMER economic modeling is the real discount rate (\(r\)). It represents the actual cost of capital, adjusted for inflation, allowing for more accurate comparisons of future cash flows in today's terms. The real discount rate is calculated using Equation (19). \[r=\frac{i-f}{1+f} \tag{19}\]  
where \(i\) is the nominal discount rate, representing the market interest rate, including the effects of inflation. It accounts for investment risks, borrowing costs, and expected returns. Meanwhile, \(f\) is the expected inflation rate, indicating the projected increase in price levels over time. In this study, the nominal discount rate is 8.00%, while the expected inflation rate is 4.00%. Using Equation (19), the real discount rate is calculated as 3.85%, which adjusts for inflation and represents the true purchasing power of future costs and revenues. In financial analysis, a lower real discount rate enhances the attractiveness of long-term investments, as it preserves the value of future cash flows when accounting for inflation. Another key economic parameter is the project lifetime (\(N\)), which defines the total years the system is expected to operate before decommissioning. It is essential in economic analysis, directly impacting cost calculations, financial viability, and long-term investment decisions. In this study, the project lifetime is set at 20 years. When assessing the financial feasibility of an energy project, several key economic indicators are considered. One such metric is the net present cost (NPC), which represents the system's total lifetime cost, discounted to present value. It accounts for all capital, operation and maintenance (O&M), replacement, and fuel costs while deducting any revenue or salvage value, as defined in Equation (20). \[NPC=\sum_{t=0}^{N}\frac{C_{t}}{\left(1+r\right)^{t}} \tag{20}\]  
where \(C_{t}\) is the net cash flow (cost or revenue) in year \(t\). A lower NPC indicates a more cost-effective system. Another essential economic metric is the levelized cost of energy (LCOE), which represents the cost per unit of energy (1 kWh) produced over the system's lifetime, as shown in Equation (21). It is widely used to compare different energy generation technologies in terms of cost-effectiveness. \[LCOE=\frac{NPC}{E_{total}} \tag{21}\]  
where \(E_{total}\) is the total energy generated over the project lifetime (kWh or MWh). A lower LCOE means the system generates energy at a lower cost. Similarly, the return on investment (ROI) quantifies a project's profitability as a percentage of the initial investment, as defined in Equation (22). \[ROI=\frac{Net\ profit}{Initial\ investment}\times 100 \tag{22}\]  
where net profit is the difference between total revenue and total cost, and initial investment refers to the capital cost incurred at the start of the project. A higher ROI signifies a more profitable and financially viable investment. Likewise, the internal rate of return (IRR) is the discount rate at which the net present value (NPV) equals zero, as shown in Equation (23). It indicates the project's expected return rate and is a key measure of investment viability. \[\sum_{t=0}^{N}\frac{C_{t}}{\left(1+IRR\right)^{t}}=0 \tag{23}\]  
where \(C_{t}\) is cash flow in year \(t\). A higher IRR means the project is financially attractive. If IRR \(>\) discount rate, the project is considered profitable. Finally, the payback period represents the time required to recover the initial investment through cumulative net cash flows, as defined in Equation (24). It is a crucial metric for assessing the risk and financial viability of the project.