The levelized cost of storage (LCOS) is the total cost of the battery over its life expressed in cents per kilowatt-hour of electricity discharged by the battery. The LCOS takes into account the following:

•Cost of installing, maintaining, and replacing the battery.

•Cost of electricity to charge the battery.

•Degradation of battery capacity over time.

SAM's LCOS calculations are based on the method described in Schmidt, O.; Melchior, S.; Hawkes, A.; Staffel, I. (2019). Projecting the Future Levelized Cost of Electricity Storage Technologies. Joule. Vol 3 p 81-100.

For behind-the-meter battery storage applications, the cost of electricity to charge the battery is determined by the retail electricity rates defined on the Electricity Rates page. For front-of-meter applications, the cost depends on the retail rates defined on the Electricity Purchases page.