I'm having trouble understanding the effect of efficiency on the cost of electricity for a PV system.(adsbygoogle = window.adsbygoogle || []).push({});

By the graph I've uploaded, as the efficiency of a PV system goes up, the cost of electricity goes up. But the equation in the other photo has efficiency in the denominator of the equation, meaning that when efficiency increases, the cost of electricity decreases,assuming investment and maintenance costs stay the same.

I'm intuitively thinking that as efficiency increases electricity prices also increase. Is my problem that I'm assuming investment and maintenance costs stay the same? I would assume that a more efficient system costs more to make as it uses more materials and more labor.

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# What is the effect of efficiency on the cost of electricity?

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