Calculate the levelised cost of solar electricity over the system lifetime.
LCOE discounts both cost and generation, which is essential — discounting only the cost would flatter the result. Rooftop solar typically lands between 5 and 12 cents per kWh, well below retail tariffs in most markets. LCOE is the only fair way to compare solar with grid electricity, because it accounts for the up-front cost being spread across decades of output.
Solar LCOE
LCOE = discounted lifetime cost ÷ discounted lifetime generation
LCOE = discounted lifetime cost ÷ discounted lifetime generation LCOE discounts both cost and generation, which is essential — discounting only the cost would flatter the result. Rooftop solar typically lands between 5 and 12 cents per kWh, well below retail tariffs in most markets.
LCOE is the only fair way to compare solar with grid electricity, because it accounts for the up-front cost being spread across decades of output.
This calculator takes 6 inputs: Total installed cost, First year generation, System lifetime, Annual degradation, Discount rate, Annual maintenance cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.