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Levelized Cost of Energy (LCOE) Calculator

Calculate Levelized Cost of Energy (LCOE)



Formula

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

LCOE=NPVCNPVEE

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):

LCOE=1,000,0005,000,000=0.20 dollars per kWh

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