Levelized Cost of Energy Calculator

Calculate the levelized cost of energy (LCOE) for a solar PV system based on capital costs, O&M, and lifetime production.

Input Parameters

Results

--
LCOE
$/kWh
--
Total Lifecycle Cost
$
--
Total Lifetime Energy
kWh
--
LCOE
cents/kWh
Note: Typical residential solar LCOE is $0.05-0.10/kWh. Grid parity occurs when LCOE < retail electricity rate. Lower discount rates favor solar investments.

Reference

LCOE = (CAPEX + SUM[O&M_t / (1+r)^t]) / SUM[E_t / (1+r)^t] E_t = Annual Gen x 0.995^t (0.5%/yr degradation) Discounted over system lifetime Units: $/kWh