Cost-Benefit Analysis (CBA) of space-based solar power (SBSP) evaluates the feasibility of generating solar energy in orbit and transmitting it to Earth. The analysis compares high upfront costs—satellite manufacturing, launch, in-orbit assembly, wireless power transmission infrastructure, and maintenance—against long-term benefits. Key benefits include continuous, weather-independent energy supply, reduced land use, enhanced energy security, and significant reductions in greenhouse gas emissions. CBA considers a long time horizon and applies discounting to estimate Net Present Value, Economic Internal Rate of Return, and Benefit-Cost Ratio. It also accounts for technological uncertainty, declining launch costs, and risks related to safety and regulation. Scenario and sensitivity analyses are critical due to evolving technologies. SBSP is considered viable if long-term system-wide benefits outweigh substantial initial and operational costs.
