How is the ETB Lifetime Cost of Energy (LCOE) calculated and what does it represent?

Our LCOE is calculated by finding the sum of all the positive cash flows (energy savings, incentives, positive tax effects) minus all the negative cash flows (project costs, O&M, financing costs, negative tax effects), divided by the total amount of kWh energy produced over the user-specified life of the project. The LCOE represents the all-in average blended cost of solar energy over the project’s lifetime.