Levelized Cost of Energy (LCOE) Calculator

Calculate Levelized Cost of Energy (LCOE)



Formula

The formula to calculate the Levelized Cost of Energy (LCOE) is:

\[ \text{LCOE} = \frac{\text{NPVC}}{\text{NPVEE}} \]

Where:

What is Levelized Cost of Energy (LCOE)?

The Levelized Cost of Energy (LCOE) is a metric used to describe the total cost to run and operate an electrical energy-producing asset per unit of energy produced over its lifetime. This metric can then be used to compare different types of energy production to see which would be more cost-effective per unit of energy produced.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Levelized Cost of Energy (LCOE):

\[ \text{LCOE} = \frac{1,000,000}{5,000,000} = 0.20 \text{ dollars per kWh} \]

The Levelized Cost of Energy (LCOE) is $0.20 per kWh.