Levelized Cost of Storage (LCOS)

The Levelized Cost of Storage (LCOS) is a way to measure the average cost of storing energy over the lifetime of a storage system, like a battery. It accounts for all costs involved—initial purchase, installation, maintenance, and replacement—divided by the total energy stored and released across the system’s lifespan. This helps compare different energy storage options on a consistent basis, showing how much it costs to store and deliver a unit of energy over time. Essentially, LCOS reflects the efficiency and economic viability of storing energy for future use.