Compare Electricity Costs: Gas, Coal, Wind and Solar

This calculator compares the estimated cost of electricity from natural gas, coal, wind, and solar using the same unit: dollars per megawatt-hour. Enter each source’s cost per megawatt-hour from a consistent estimate or dataset; the calculator returns their average and the lowest entered cost, helping you make a like-for-like comparison.

Formula

The calculator finds the unweighted mean of the four entered costs and the smallest of those costs.

• Average cost = (natural gas cost + coal cost + wind cost + solar cost) ÷ 4.
• Lowest cost = the minimum of the four entered costs.

Each input and output is in dollars per megawatt-hour ($/MWh). One megawatt-hour is 1,000 kilowatt-hours (kWh), so $/MWh is not the same as cents per kWh. To convert dollars per MWh to cents per kWh, divide by 10; for example, $50/MWh equals 5 cents/kWh.

Worked Example

Using the calculator’s default inputs:

• Natural gas: $70/MWh
• Coal: $90/MWh
• Wind: $50/MWh
• Solar: $45/MWh

Average = (70 + 90 + 50 + 45) ÷ 4 = 255 ÷ 4 = $63.75/MWh.

Lowest = min(70, 90, 50, 45) = $45/MWh.

The displayed results are an average cost of $63.75/MWh and a lowest entered cost of $45.00/MWh. The calculation is only as comparable as the figures you enter; it does not find current market prices or decide which source is cheapest in a particular location.

What You’ll Need

• A cost estimate for each generation source, with a clear definition of what the estimate includes.
• The time period and location the figures represent.
• Values converted to one currency and one unit, preferably dollars per megawatt-hour.
• A note on whether the figures are levelized generation costs, wholesale prices, or another measure. These are different quantities and should not be mixed.

Step-by-Step

1. Choose the question you want to answer. For a broad comparison of generation economics, look for levelized cost of electricity (LCOE) estimates. LCOE spreads a power plant’s costs over its expected electricity production and operating life. For the cost of power at a particular time, use comparable wholesale market prices instead. Do not treat one as a substitute for the other.
2. Set a common scope. Decide whether you are comparing generation alone or a broader system cost. Generation estimates may include construction, fuel, operations, and financing assumptions, but often do not fully capture grid upgrades, storage, backup generation, or the value of electricity at different times. Check the source’s definitions.
3. Find all four estimates. Use a consistent source where possible, or sources that clearly share the same geography, year, currency, cost boundary, and assumptions. Record the original units and whether each figure is a central estimate or a range. For wind and solar, note whether estimates are for new projects and what technology or project type they cover.
4. Normalize the figures. Convert each estimate to the same currency and unit. If a figure is in dollars per kilowatt-hour, multiply by 1,000 to get dollars per megawatt-hour. If it is in cents per kilowatt-hour, multiply by 10. Do not enter a household bill rate in cents per kWh alongside plant costs in dollars per MWh without converting it first.
5. Enter the costs. Type the natural gas, coal, wind, and solar values in their matching fields. Use nonnegative values. If your source gives a range, decide whether to compare low estimates, high estimates, or midpoints, and use the same approach for all four sources.
6. Read both outputs carefully. The average is the simple mean of the four values; each source contributes equally, regardless of how much electricity it generates. The lowest output identifies the smallest input, not a guaranteed winner for every project or hour.
7. Test assumptions and report them. Try a second consistent dataset or scenario if results depend on fuel prices, financing, capacity factors, or project location. When sharing the comparison, state the source, year, location, cost definition, and unit so readers can interpret it.

Common Mistakes

• Mixing measures: LCOE, wholesale prices, retail electricity bills, and construction costs answer different questions. Compare like with like.
• Forgetting unit conversion: A value in $/kWh is 1,000 times the same numerical value expressed in $/MWh. Check both the unit and currency before entering anything.
• Assuming all costs are included: A generation-cost estimate may omit transmission, storage, balancing, or other system costs. Read its methodology.
• Comparing different years or places: Fuel, financing, labor, and resource conditions vary. A value from one market or year may not represent another.
• Reading the average as a market result: The calculator’s average is not weighted by generation, demand, or time. It is a simple arithmetic summary of four numbers.
• Ignoring ranges and uncertainty: A single rounded estimate can hide substantial variation. Preserve the original range and assumptions when drawing conclusions.

Tips

• Keep a small source table with the value, unit, year, location, cost boundary, and citation for each input.
• For a more informative comparison, calculate separate averages for each scenario rather than combining estimates with different assumptions.
• Convert $/MWh to cents/kWh by dividing by 10, but remember that a plant-generation cost is not automatically the price a household pays.
• For policy or planning work, examine system effects and timing separately. Wind and solar output varies with weather; dispatchable plants have different operating patterns and fuel exposure.
• Round only for display. Keep more precise source values in your notes so repeated calculations do not accumulate rounding error.

Troubleshooting

• The result seems implausibly high or low: Check whether you entered cents instead of dollars, kWh instead of MWh, or a percentage in a cost field. Confirm the decimal point and currency.
• One source has no comparable estimate: Do not invent a number or use a different measure just to fill the field. Find a matching estimate, revise the comparison scope, or report that the source is missing; the four-input average is not meaningful with an arbitrary substitute.
• Your source gives a range: Run the calculator with all low-end values, then all high-end values, if the ranges are based on comparable methods. Otherwise show the ranges separately rather than implying they form a consistent scenario.
• Different sources disagree: Compare their assumptions, dates, locations, financing, fuel prices, capacity factors, and inclusions. The disagreement may reflect different methods rather than a calculation error.
• The lowest cost does not match your expected ranking: Verify the inputs and then check whether the source measures the same technology, project type, and cost boundary. The calculator reports the numbers provided; it cannot resolve methodological differences.

Frequently Asked Questions

What does electricity cost per MWh mean?
It is a cost expressed for one megawatt-hour of electricity. One MWh equals 1,000 kWh; $50/MWh is equivalent to 5 cents/kWh.

Is the lowest result the cheapest electricity for consumers?
No. It is only the lowest of the four entered generation-cost estimates. Retail bills can also include transmission, distribution, taxes, and other charges.

Should I use LCOE or wholesale prices?
Use LCOE to compare estimated lifetime generation costs under stated assumptions. Use wholesale prices to compare market prices over a specified place and time. Do not combine the two.

Does this account for wind and solar variability?
No. The calculator compares entered figures only. It does not model when electricity is produced, storage, backup, transmission, or the value of power at different times.

Can I compare estimates from different countries?
Only with care. Convert currencies consistently and check that years, financing assumptions, project definitions, and included costs are comparable. Currency conversion alone does not make estimates equivalent.

Why calculate an average of all four sources?
It gives a simple summary of the four inputs, but it is not a typical electricity cost unless equal weighting is appropriate for your purpose. Use the individual values for most source-by-source comparisons.

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in gas | Natural gas cost | $/MWh | 70 | 0
in coal | Coal cost | $/MWh | 90 | 0
in wind | Wind cost | $/MWh | 50 | 0
in solar | Solar cost | $/MWh | 45 | 0
out avg | Average cost | $/MWh | (gas + coal + wind + solar) / 4 | 2
out low | Lowest cost | $/MWh | min(min(gas, coal), min(wind, solar)) | 2