Skip to main content
EconomicsUp to date · Jan 15, 2026

LCOE (Levelized Cost of Energy)

The average total cost of building, fueling, and operating a power plant per unit of electricity produced over its lifetime, expressed in $/MWh. LCOE enables apples-to-apples comparison across different generation technologies.

Why It Matters

LCOE is the most commonly cited metric for comparing power plant costs. Utility-scale solar ($25-$50/MWh) and onshore wind ($25-$55/MWh) now have the lowest LCOE of any new-build generation in most regions.

Related Topics

Related Terms