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Levelized Cost of Energy

Calculate the all-in cost per MWh for any power generation technology. Use this to evaluate PPA proposals, compare procurement options, or benchmark project economics.

Technology

Select the generation type to auto-populate typical parameters. Adjust any input to match your project.

☀️
Solar
Utility-scale PV
🌀
Wind
Onshore wind
🔥
Gas
CCGT / Peaker
🔋
Storage
Li-ion BESS
Combined Cycle (CCGT)
Simple Cycle (Peaker)
4-Hour Duration
2-Hour Duration

Project Parameters

These drive the LCOE calculation. Defaults reflect current US market conditions.

AC nameplate capacity
$/kW all-in (solar: 1,150 - 1,600)
Typical US utility-scale solar: 20-30%
Useful operating life of the asset
Annual fixed operating cost per kW of capacity
Per-MWh production cost (fuel excluded)
Natural gas price. Zero for renewables/storage.
Thermal efficiency. Zero for renewables/storage.
Annual output decline rate
Annual O&M cost increase
5% (low risk) 10% 15% (high risk)
Use 5-7% for investment-grade contracted assets, 8-10% for typical project finance, 10-15% for merchant or development-stage.

Tax Credits

IRA tax incentives reduce the effective cost of energy for eligible technologies.

IRA Investment Tax Credit or Production Tax Credit
LEVELIZED COST OF ENERGY
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$/MWh (unsubsidized)

Industry Benchmark Comparison

How your calculated LCOE compares to industry ranges for this technology.

$0 $200

Key Metrics

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Total Capital Cost ($M)
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Lifetime Generation (GWh)
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Year 1 Output (GWh)

LCOE Breakdown

Component costs expressed as $/MWh contribution to total LCOE.

Component$/MWh

Assessment

What This Means for Procurement

Where Does Your LCOE Sit vs. the Market?

Recent contracted PPA prices and capacity market clearing prices provide context for whether your project economics support a viable offtake strategy.

Sources: NREL Annual Technology Baseline 2024, EIA AEO 2025 Capital Cost Study, PNNL Energy Storage Cost Database 2024, PJM 2025/26 and 2027/28 BRA Results, ISO-NE FCA 19, CAISO 2025-26 RA pricing, MISO 2024 State of Market, Damodaran Sector Benchmarks (Jan 2025), Lazard LCOE+ v17. All figures are national ranges - regional pricing varies significantly by ISO/RTO, interconnection queue position, and offtaker credit quality. Capacity prices updated Mar 2026.

Project Finance Benchmarks (Damodaran, Jan 2026)

MetricPowerUtilityGreen/Renew
WACC5.01%4.36%6.04%
Cost of Debt (after-tax)3.20%2.98%3.65%
D/E Ratio82.1%68.7%51.4%
Unlevered Beta0.480.330.68
EBITDA Margin36.2%33.5%44.1%
Credit ProfileSpreadAll-in RateMin DSCR
IG PPA, strong offtaker120-150 bps5.5-6.0%1.20x
Standard PPA, IG offtaker150-200 bps6.0-6.5%1.25x
Partial merchant250-350 bps7.0-8.0%1.35x
Full merchant350-500 bps8.0-9.5%1.50x+

Want regional detail? These are national ranges. PPA pricing, capacity values, and financing terms vary dramatically by ISO region, node, vintage, credit structure, and deal size. If you are evaluating a specific project, structuring an offtake, or modeling a financing, we can run the numbers against your actual market conditions.

Need Help With Your Project Economics?

Whether you are evaluating PPA offers, sizing a capacity position, comparing build vs. buy, or structuring a financing - we model the full picture so you can negotiate from a position of strength.

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This calculator produces illustrative LCOE estimates using generalized industry parameters. Actual project costs depend on site conditions, interconnection, permitting, equipment procurement, financing terms, and other project-specific factors. Results are not a substitute for a detailed engineering or financial analysis. Not investment advice.