Levelized Cost of Energy (LCOE)

How much does each unit of energy actually cost over time?

The Levelized Cost of Energy (LCOE) measures the average cost of generating electricity over the lifetime of a power system. It includes all costs - construction, maintenance, and financing - divided by the total electricity produced. It helps compare different energy sources on a fair basis. For renewables like solar, falling LCOE signals growing competitiveness and is key to reaching grid parity, when clean energy becomes as cheap as fossil fuels without subsidies.

Source: https://energy.sustainability-directory.com/term/grid-parity-economics/