LCOE & Renewable Project ROI Calculator
Calculate levelized cost of energy, NPV, IRR, and payback period for solar, wind, geothermal, and hydro projects -- built for quick feasibility screening.
Inputs
Pick a technology to load typical assumptions, then override with your own numbers.
Ground-mount, grid-scale PV plants (typically 5 MW+).
Used for revenue, NPV, IRR, and payback -- not for LCOE itself.
A planning-grade estimate, not a bankable financial model. Real projects involve financing structure, tax credits/incentives, curtailment, and site-specific risk not modeled here.
LCOE & project economics
Levelized cost, NPV, IRR, and payback.
At $40/MWh, this project is projected to earn roughly 5.7% IRR and pay back in about 13.9 years.
LCOE = present value of lifetime costs (capex + opex) ÷ present value of lifetime energy production. Low/Base/High sensitizes capex ±15%, a standard LCOE sensitivity range. NPV, IRR, and payback use your electricity price assumption and are shown for the base-case capex only.
Methodology & sourcing
LCOE = present value of lifetime costs (CapEx + OpEx) Ă· present value of lifetime energy production, using your discount rate. This is the standard levelized-cost formulation used by resources like NREL's Annual Technology Baseline and Lazard's Levelized Cost of Energy+ report.
NPV, IRR, and simple payback use your electricity price/PPA rate to model annual revenue minus OpEx, discounted at your chosen rate. IRR is solved numerically and returns "N/A" when the project doesn't recover its capital cost within the project lifetime at the given price.
Technology defaults are directional, US-blended assumptions -- always replace them with site-specific quotes and production estimates before making an investment decision.
FAQ
Common questions about levelized cost of energy and renewable project ROI.
What is LCOE?
Levelized Cost of Energy (LCOE) is the present value of a power project’s lifetime costs (capital + operating) divided by the present value of its lifetime energy production, expressed in $/MWh. It’s the standard way to compare the cost-competitiveness of different generation technologies on an apples-to-apples basis.
What is the ROI calculator adding on top of LCOE?
LCOE tells you the cost side. Combined with an electricity price or PPA rate assumption, this tool also models the revenue side -- producing NPV (net present value), an estimated IRR (internal rate of return), and a simple payback period for the project.
Where do the default cost and performance assumptions come from?
Technology defaults (CapEx, OpEx, capacity factor, project life, degradation) are directional, US-blended figures informed by public benchmarks such as NREL’s Annual Technology Baseline and Lazard’s Levelized Cost of Energy+ report. They’re starting points -- always replace them with site-specific quotes before making an investment decision.
Why does Low/Base/High only vary CapEx?
CapEx uncertainty is typically the largest and earliest-known swing factor in a project’s economics, so a ±15% CapEx sensitivity is a common, simple way to bound LCOE. Other inputs (OpEx, capacity factor, discount rate) can be adjusted directly via the advanced fields.
Why does IRR sometimes show "N/A"?
If the project’s total undiscounted net revenue over its lifetime doesn’t exceed its capital cost, there’s no discount rate that makes NPV zero, so IRR is undefined. Try a higher electricity price, lower CapEx, or a longer project life.
Does this include tax credits, incentives, or financing structure?
No. This is a simplified, unlevered model using your entered electricity price and cost assumptions -- it doesn’t model debt/equity structure, depreciation, or incentives like the US ITC/PTC. Treat it as a planning-grade estimate, not a bankable financial model.
Can I share a specific scenario with my team?
Yes. The tool generates a shareable link that preserves every input -- technology, capacity, CapEx, OpEx, capacity factor, project life, degradation, discount rate, and electricity price.
What about battery storage (LCOS)?
Levelized Cost of Storage (LCOS) requires different modeling -- cycling behavior, round-trip efficiency, and augmentation costs -- and isn’t covered by this generation-focused calculator.