Sometimes, for larger systems, we have a lower cost per kW (economy of scale). We can add rows to the cost table to model these systems:
For search space values other than 1, 2, or 3, HOMER uses the two nearest points to interpolate or extrapolate the cost (the cost for zero kW is always zero). For example, for a system size of 0.5 kW, HOMER uses the first and second row in the table to extrapolate costs of $1600 capital, $1350 replacement, and $9/year O&M. For 2.5 kW, HOMER interpolates on the second and third rows in the table to get $7050 capital, $5800 replacement, and $13/year O&M. Finally, for a capacity of 10 kW, HOMER extrapolates on the second and third rows, which gives costs of $25800 capital, $20800 replacement, and $28/year O&M.
HOMER uses this algorithm on all the cost tables in your model. With the cost table defined this way, HOMER can optimize your microgrid to take advantage of the cost savings for larger systems.