Solar Levelized Cost of Energy Analysis

NREL conducts levelized cost of energy (LCOE) analysis for photovoltaic (PV) technologies to benchmark PV costs over time and help PV researchers understand the impacts of their work.

This analysis can include LCOE benchmarking and tracking progress against U.S. Department of Energy SunShot Targets, exploring pathways to reduced LCOE, and understanding LCOE drivers to guide research, development, and investment decisions.

Map of the United States depicting levelized cost of energy in a range from 12 dollars per megawatt hour to 22+ dollars per megawatt hour. In general, the lowest costs are in the west and south of the United States, with the highest costs per megawatt hour coming from the westernmost areas of Washington state. — NREL analysis enabled the calculation of how advanced PV technology could lower the levelized cost of energy from solar at hundreds of thousands of locations across the United States.

Levelized Cost of Energy Calculator

This simple levelized cost of energy calculator is intended to help PV researchers with limited knowledge of costs and markets quickly estimate how their ideas might influence LCOE. It also helps them examine different trade-offs between cost and performance.

This tool complements other resources, such as the NREL System Advisor Model, that can be used for more detailed project-specific analyses.

Publications

Research and Development Priorities To Advance Solar Photovoltaic Lifecycle Costs and Performance, NREL Technical Report (2021)

Updates to the Instant Online PV LCOE Calculator Tool, DuraMAT Webinar Presentation (2021)

Technology Advances Needed for Photovoltaics To Achieve Widespread Grid Price Parity, Progress in Photovoltaics (2016)

The Role of Advancements in Solar Photovoltaic Efficiency, Reliability, and Costs, NREL Technical Report (2016)

Find more solar manufacturing cost analysis publications.

Tutorials

Watch these video tutorials to learn how NREL analyzes PV projects with regards to LCOE, internal rate of return, and levelized cost of solar plus storage. They are part of NREL's Solar Techno-Economic Analysis Tutorials video series.

Levelized Cost of Electricity and Internal Rate of Return Calculations for PV Projects

Levelized Cost of Electricity and Internal Rate of Return Calculations for PV Projects text version

Levelized Cost of Solar Plus Storage

Levelized Cost of Solar Plus Storage text version

Contact

Researcher IV, Economic/Financial Analysis

Michael.Woodhouse@nrel.gov
303-384-7623