In one line
Per-unit cost of electricity that recovers all lifetime costs of a project — the standard cost metric for energy projects.
What it means
Levelized Cost of Electricity (LCOE) is the per-unit price ($/MWh or ₹/kWh) at which a project recovers all lifetime costs — capex, opex, fuel, financing — over its operational life. The standard metric for comparing the economic competitiveness of different generation sources. Solar LCOE has fallen dramatically over the past decade, making it the cheapest new generation in most markets.
Related terms
Browse every term in the renewable energy glossary, or read the latest analysis on Finance.