SmartHelping / Renewable Energy / Excel
LCOE Financial Model & Sensitivity Analysis
Calculate the present value of a power plant's lifetime costs against the present value of its future energy production. Test solar, wind, nuclear or other generation assumptions and see the resulting cost per MWh and per kWh.
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See the model in action
Review the inputs, calculations and outputs.
Watch the walkthrough, then open the presentation for a closer look at the single-tab model, cost assumptions, energy-production logic, visualizations and sensitivity analysis.
What the template includes
A focused model for comparing energy economics.
Build the production and cost forecast, discount both streams to today's value and identify which assumptions have the greatest effect on the final cost of energy.
Connect lifetime cost to lifetime output
Calculate LCOE as the present value of all modeled costs divided by the present value of estimated MWh production.
Choose the period that fits the asset
Model scenarios for up to 25 years and see how operating life, degradation and long-term costs affect the result.
Keep the full analysis together
Inputs, calculations, charts and outputs sit on one tab, making the analysis easy to review or port into an existing model.
Test the assumptions that can move LCOE
Apply a defined high-and-low percentage to seven key variables and compare the resulting change in cost per MWh.
See the order of importance automatically
The tornado chart automatically sorts the variables as assumptions change, putting the largest modeled impacts first.
Explain the result visually
Use eight charts, including the tornado sensitivity chart and cost breakdown, to communicate the model's outputs clearly.
Let the workbook update with the inputs
Change capacity, costs, project life, rates or production assumptions and see the calculations and charts update together.
Know what to change
Clear color coding distinguishes input cells from formulas, and the Excel workbook remains fully editable for your project.
How the model works
Build both sides of the LCOE equation.
LCOE = Present value of all modeled costs / Present value of estimated MWh production. The workbook brings the production, cost and discounting assumptions together to calculate a comparable lifetime cost of energy.
Energy production
Start with nameplate capacity, net capacity factor, degradation and the life of the project. These inputs produce the forecast of MWh generated over time.
Project costs
Enter initial CAPEX, fixed operating and maintenance costs per kW per year, variable operating and maintenance costs per MWh, major component overhaul timing and cost, and decommissioning costs.
Time value assumptions
Use the discount rate to bring future energy and costs to present value, while the inflation rate adjusts applicable future costs.
Decision outputs
Review present value of energy produced, present value of costs, final cost per MWh and per kWh, and the final cost breakdown.
How to use it
From project assumptions to a comparable energy cost.
Define the power plant and operating life
Enter nameplate capacity, net capacity factor, degradation and the number of years to model.
Build the lifetime cost stream
Add initial CAPEX, fixed and variable O&M, major component overhaul assumptions and decommissioning costs.
Set the financial assumptions
Choose the discount rate and inflation rate used to evaluate future energy production and project costs in today's dollars.
Review LCOE and test the drivers
Use the cost-per-MWh output, cost breakdown, charts and high-and-low sensitivity cases to understand the result.
Who gets value from it
Built for people comparing power-generation economics.
Renewable energy developers
Estimate lifetime cost per unit of energy and test the production and operating assumptions behind a solar, wind, hydro or other project.
Investors and lenders
Review the cost structure, project-life assumptions and sensitivity drivers before evaluating a power-generation opportunity.
Financial analysts and advisors
Use a portable single-tab framework to compare technologies or add an LCOE calculation to a broader financial model.
Owners and project planners
Understand how capacity, degradation, CAPEX, O&M, overhaul costs and discount rates contribute to the final energy cost.
Also available in these bundles
Need a broader financial-model library?
The LCOE calculator is included in five SmartHelping collections. Compare the bundles if you expect to model more technologies, industries or sensitivity-driven decisions.
Industry-Specific Bundle
Explore operating and investment models built around the economic drivers of many different industries.
View Industry-Specific BundleIndustrial Bundle
Find financial models for power generation, infrastructure, equipment, construction and other industrial projects.
View Industrial BundleRenewable Energy Bundle
Work with models for solar, wind, hydro, biogas, hydrogen and other energy businesses and projects.
View Renewable Energy BundleSensitivity Analysis Bundle
Compare models that help isolate the assumptions with the greatest effect on financial or operating outcomes.
View Sensitivity Analysis BundleSuper Smart Bundle
Get the complete SmartHelping collection of operating forecasts, valuation tools, financial models and templates.
View Super Smart BundleRelated financial models
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Explore the Pareto templateQuestions before you choose
A few useful details.
What does LCOE measure?
Levelized Cost of Energy estimates the present-value lifetime cost required to produce one unit of energy. This model reports the result per MWh and per kWh.
How does the workbook calculate LCOE?
It divides the present value of all modeled project costs by the present value of estimated MWh production. The discount rate applies to both the future cost stream and future energy output.
What kinds of power plants can I model?
The framework can be used for solar, wind, nuclear or another generation technology when you replace the example assumptions with the applicable capacity, production, cost and timing inputs.
How long is the forecast?
You can choose a project life of up to 25 years. The model applies degradation, costs, inflation and discounting across the period you define.
What does the tornado chart show?
It shows the high-and-low effect of seven individual variables on the final cost per MWh. The chart automatically sorts the variables so the largest modeled effect appears first.
Can I add this calculation to another financial model?
Yes. The inputs, calculations, charts and outputs are contained on one tab, which makes the LCOE analysis easier to port into an existing Excel model.
Does LCOE capture every system-wide cost?
LCOE is a project-level comparison metric. Costs such as storage, grid upgrades or other system effects are not captured unless they are explicitly included in the assumptions you model.
Is the workbook editable?
Yes. The Excel file is fully editable, with color coding to distinguish assumption inputs from formulas.
Compare energy economics with the key drivers in view
Turn lifetime project costs into one comparable energy cost.
Get the editable Excel LCOE calculator for $45.
