Diesel vs Grid vs Solar Cost per kWh
What does a kWh really cost from each source?
Your numbers
Your results
Diesel vs Grid vs Solar Cost per kWh by TheCalcTools
How the Diesel vs Grid vs Solar Cost per kWh works
Enter the diesel price, generator efficiency and O&M cost per kWh.
Enter the grid tariff you actually pay.
For solar, enter system cost, size, daily yield and life; the tool spreads capital and O&M over lifetime energy (simple levelised cost, no financing).
The formula
Worked example
Using the default values shown in the calculator:
| Diesel price (PKR per litre) | Rs275 |
|---|---|
| Genset output (kWh per litre) | 3.2 |
| Genset O&M (PKR per kWh) | Rs8 |
| Grid tariff (PKR per kWh) | Rs62 |
| Solar system cost (PKR) | Rs1.8e+06 |
| Solar size (kWp) | 10 |
| Yield (kWh per kWp per day) | 4.2 |
| System life (years) | 20 |
| Solar O&M per year (PKR) | Rs30000 |
- Diesel = 275 ÷ 3.2 + 8 = 93.94 PKR/kWh.
- Grid = 62.00; solar = (1,800,000 ÷ 20 + 30,000) ÷ (10 × 4.2 × 365) = 7.83.
- Cheapest: Solar.
Result:
| Diesel generation (PKR per kWh) | 93.94 |
|---|---|
| Grid (PKR per kWh) | 62.00 |
| Solar, levelised (PKR per kWh) | 7.83 |
| Cheapest source | Solar |
| Diesel costs this many times grid | 1.5 |
Frequently asked questions
Is this a full LCOE?
No. It is a simple annualised cost without interest, tax or degradation. Use it to compare sources, not for investment approval.
What about battery cost?
Not included. If batteries are needed, add their annual cost to the solar O&M figure.
Sources and further reading
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This calculator gives estimates for planning only. Electrical installations must be designed, checked and carried out by qualified personnel following local codes and the equipment manufacturer's data. Never rely on this result alone for safety-critical decisions. See our disclaimer.