Distributed solar PV and distributed energy resources (DERs) are a key part of the sustainable energy future. Compared to conventional power, the costs and benefits of DERs are more distributed in nature. We have developed the Levelised Cost Calculator for Distributed Energy Resources as a part of our efforts to quantify these costs and benefits.

The first version of the tool was released in October 2020. The latest update (version 3.0) was released in June 2022. The tool can calculate the levelised cost of energy from different RE technologies as well as energy storage. For calculation of levelised cost of storage (LCOS), detailed mechanics of energy storage, such as annual degradation of the storage capacity, depth of discharge (DoD), etc. are taken into account.

In the future, we plan to further develop an avoided costs calculator to accompany the current tool to provide a more comprehensive understanding of the value of DERs, from both utility and consumer perspectives.

Version 3.0 – Development and Updates

1. The major development in Version 3.0 LCOE tool is the introduction of Diesel Generator. The assumption and data considered for LCOE calculation is mentioned in “RE & DG Reference” sheet.
2. For calculating depreciation, straight line method has been introduced for all DERs. The annual depreciation is calculated as a percentage of the net capital cost.
3. Fuel cost escalation was introduced for all DERs. In V.3.0, fuel cost escalation (%) is taken in account to calculate the fuel cost for the consecutive years for RE and DG technology.
4. Salvage value of diesel generator is not considered in the current version.

Click here to download the Excel calculation tool. Please enable editing and macros to use the Excel tool.