Battery LCOS calculator

A battery purchase price does not tell you the cost of the energy it delivers. Put capital, operating and charging costs on the same lifetime basis.

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90AC round-trip efficiency
3000annual AC energy delivered
Capital0.3211Operations0.03333Charging energy0.1667Replacement0End of life0EUR/kWh delivered
Capital
0.3211 EUR/kWh
Operations
0.03333 EUR/kWh
Charging energy
0.1667 EUR/kWh
Replacement
0 EUR/kWh
End of life
0 EUR/kWh

Total 0.5211 EUR/kWh · excluding charging energy 0.3545

Each contribution uses the same discounted lifetime AC delivery. This cost comparison does not predict revenue or savings.

Example values
Cost and delivery
Currency
EUR
kWh/year
%
EUR/kWh
EUR/year
Project life
years
%

0 means no replacement.

year
EUR

Removal cost less salvage proceeds, paid at the end of the year after the project ends.

EUR

Levelised cost of delivered storage energy

0.5211EUR/kWh

15 years at 5% real discount rate, constant 3,000 kWh annual AC delivery.

Storage cost excluding charging electricity
0.3545 EUR/kWh
Charging electricity per delivered kWh
0.1667 EUR/kWh
Energy needed to charge
3,333 kWh/year

All money is in today’s prices. This is a cost comparison, not a bill-savings or investment-return forecast. Enter a sustainable lifetime-average annual throughput.

How it’s calculated
  1. Annual charging energy = annual discharged AC energy ÷ AC round-trip efficiency=3,000 ÷ 0.9=3,333 kWh
  2. LCOS = present value of all costs ÷ discounted lifetime AC delivery=16,228 ÷ 31,139=0.5211 EUR/kWh

The discounted cost is 0.5211 EUR per kWh discharged, including charging electricity.

Tip: Annual throughput matters as much as capacity. Enter sustainable average annual AC delivery, not battery kWh multiplied by an assumed cycle count without checking operation.

Compare costs on the same lifetime basis

LCOS expresses the discounted cost of owning, operating and charging a storage system per discounted kWh it delivers. A lightly used battery can have a high cost per delivered kWh even when its purchase price per kWh of capacity looks attractive.

This model keeps storage ownership and charging electricity visible separately. All costs use today’s prices and a real discount rate; energy is measured at a consistent AC discharge boundary.

Describe actual use

Annual charging kWh = annual delivered AC kWh ÷ AC round-trip efficiency

Enter sustainable lifetime-average annual delivery, allowing for degradation, downtime and dispatch restrictions. Capacity multiplied by one cycle per day is not evidence that those cycles will occur.

Discount annual costs and delivery

Present value in year y = value ÷ (1 + real discount rate)^y

Initial capital is paid at year zero. Annual operating and charging costs, replacement in its selected year, and annual delivered energy are discounted at each year end. Applying the same factor to energy gives the cost metric its lifetime weighting.

Account for retirement

End-of-life present cost = net cost ÷ (1 + rate)^(life + 1)

This follows the stated SAM convention of retirement at the end of the year after operation ends. Enter removal less salvage value; a negative amount is a net salvage receipt.

Keep revenue separate

LCOS = present costs ÷ discounted delivered kWh

The result does not predict bill savings, arbitrage revenue, demand-charge reduction or payback. Those depend on the dispatch schedule and the value of energy or services at the time of delivery.

Levelised cost of storage examples

A transparent zero-discount example

10,000 kWh is delivered. Capital costs EUR 1,000 and charging electricity costs EUR 1,000, so LCOS is EUR 0.20/kWh: EUR 0.10 storage cost plus EUR 0.10 charging cost.

Levelised cost of delivered storage energy 0.2 EUR/kWh Open in the calculator

Charging losses increase input cost

1,250 kWh must enter each year to deliver 1,000 kWh. Charging contributes EUR 0.125 per delivered kWh, giving total LCOS of EUR 0.225/kWh under these assumptions.

Levelised cost of delivered storage energy 0.225 EUR/kWh Open in the calculator

Questions about Levelised cost of storage

Is PV charging free?

It can have an opportunity cost if the same PV energy could be exported or used directly. Enter the value of the alternative use rather than automatically setting charging cost to zero.

Why is battery capacity not an input?

This calculation uses delivered annual energy and costs directly. Capacity alone cannot establish utilization, cycle life or annual delivery. Those must be supported by the proposed operating schedule.

Does a replacement reset degradation?

No. Replacement is a cost event in this simplified model. Annual delivery is already a constant lifetime-average input, and replacement does not create an automatic performance improvement.

Can I compare LCOS with an electricity tariff?

It can inform a comparison, but value depends on when energy is bought and discharged and which charges are avoided. Comparing against the wrong tariff period or ignoring demand charges can be misleading.

Limits of this result

  • All monetary inputs are in today’s prices with a real discount rate. Inflation, taxes, debt, incentives and revenue are excluded.
  • Annual AC delivery is a constant lifetime-average assumption. Degradation, cycle limits, downtime and dispatch must be reflected in that input; no battery lifetime is predicted.
  • Round-trip efficiency includes the charging and discharging path at a consistent AC boundary. Do not add the same losses or auxiliary consumption twice.
  • Replacement is a cost event only. It does not automatically change energy delivery or efficiency. Negative end-of-life cost represents salvage value.
  • Charging energy has a cost even when it comes from PV if exporting or using it elsewhere has value. Illustrative inputs are not market-price estimates.

Related guides

Sources

  1. Levelized cost of storage calculation (opens in a new tab) System Advisor Model, accessed 2026-10-01
  2. Levelized cost and discount-rate definitions (opens in a new tab) System Advisor Model, accessed 2026-10-01