Understanding the levelized cost of energy (LCOE) is key to choosing the right solar power system for your home or business. But what is LCOE, and how does it affect your choice in solar technologies? In this article, we’ll explore these questions and more.
Understanding the Basics of LCOE
According to energy.gov, LCOE is the term used for the amount you pay for each unit of electricity that your system produces over its lifetime. The levelized cost of energy is measured in cents per kilowatt-hour. With this measurement, you can compare different systems based on their efficiency and total cost. This detailed comparison is essential for picking the best system for your needs and budget.
The Importance of LCOE
For almost all consumers switching to solar power, cost plays a vital part in decision-making. The ability to look at different solar power systems and compare their cost by their projected output makes these decisions much easier. For example, two systems may seem similar, but one of them can have features that will make it more effective in your location. Furthermore, certain types of panels might perform better on your specific roof. Or, your roof or location could require more panels to be effective.
Can I Calculate LCOE?
There are a multitude of details that affect your solar power system’s output. To accurately calculate LCOE, you have to factor in them all. Like the degradation of the solar panels over time. As well as how much sunlight your system receives per day, and even your roof/location. As a result, the amount of variables makes calculating the exact LCOE difficult for the everyday consumer. But, one of our solar consultants can go over the LCOE of each of your solar panel options and help you decide which panels are best for you.
Hopefully, this review will help you to understand LCOE. Are you ready to get an LCOE estimate and a free, no-obligation quote on your new solar energy system? Reach out to us and we’ll be happy to help you with your Solar Energy journey!
