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LCOE (Levelised Cost)
Discounted levelised cost of energy over the plant life.
FinancialCore inputs only — quick sizing with engineering defaults.
Inputs (SI units)
Results
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Engineering Formula
- LCOE = [CAPEX + Σ O&M_t/(1+r)^t] / [Σ E_t/(1+r)^t]
- E_t = E₁ × (1 − d)^(t−1)
LCOE discounts both costs and energy to present value, giving the break-even tariff at which the project exactly recovers its cost. It is the standard metric for comparing PV against grid or diesel supply.
Step-by-step Calculation
- 1.Discount factor (yr 1)
1/(1+r)0.9259 - 2.PV of costs
CAPEX + Σ O&M/(1+r)^t553,374 - 3.PV of energy
Σ E_t/(1+r)^t142,913 kWh - 4.LCOE
PV cost / PV energy3.872 /kWh
Design Assumptions
- • CAPEX incurred entirely at t = 0.
- • O&M constant in nominal terms (use a real discount rate for real O&M).
- • No residual value or decommissioning cost.
Engineering Tips
- ◆Compare LCOE against the retail tariff, not the feed-in rate, for self-consumption plants.
- ◆A 1% change in discount rate typically shifts LCOE by 5–8%.
Warnings
- ▲LCOE ignores time-of-day value — do not use alone for storage or export projects.
Standards & References
IEC 61724-1IEA PVPS Task 13 (performance & LCOE)
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