Tidal Energy ROI Calculator
Tidal energy economics.
Calculate tidal energy ROI from installation cost, generation capacity, capacity factor, and the price of electricity it offsets.
What this tool does
This calculator models the return on investment for a tidal energy installation over a defined period. It takes your installation cost, generation capacity in kilowatts, expected capacity factor as a percentage, electricity price per kilowatt-hour, and annual maintenance costs as a percentage of the initial investment. The tool then calculates annual energy generation in kilowatt-hours, multiplies this by your electricity price to estimate revenue, subtracts maintenance expenses, and computes the cumulative net return and ROI percentage across your chosen timeframe. The result shows the financial outcome under your stated assumptions. Installation cost and electricity price typically have the largest effect on the final figure. This calculator is for educational illustration of tidal project economics and does not account for grid connection fees, equipment degradation over time, seasonal generation variation, or changes in electricity prices.
Quick answer: with the default values, the result is -68.02% (20-Year Tidal Energy ROI). Adjust the values below for your own figures.
Enter Values
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Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Tidal energy generates electricity from predictable tidal flows. Capacity factor 30-45% (much higher than solar at 10-15% or wind at 25-35%) because tides are predictable. Installation cost 4,000-8,000 per kW capacity. Operations cost: 2-4% of install/year. Lifespan 20-30 years with refurbishment.
10M install for 1MW capacity. 35% capacity factor × 8,760 hours = 3,066,000 kWh/year. At 0.15/kWh wholesale = 459,900 annual revenue. 300k maintenance. Net 159,900/year. Over 20 years: 3.2M total. Negative ROI vs install cost in this scenario - tidal still costly relative to mature renewables.
Tidal economics improve at scale and with FIT/CFD support. Contract for Difference auctions have set tidal at 200/MWh - much higher than solar (40/MWh) or wind (40-70/MWh). With CFD support, tidal projects are viable but not yet competitive on pure market price. Technology improving; expect cost reduction over next decade.
A worked example
With the defaults: install cost of 10,000,000, capacity of 1,000, capacity factor of 35%, electricity price per kWh of 0.15. The tool returns -68.02%.
What moves the number most
The result responds to Install Cost, Capacity (kW), Capacity Factor %, Electricity Price per kWh, and Maintenance % of Install Annual.
The formula behind this
Annual kWh = capacity × 8760 × CF. Revenue = kWh × price. Maintenance = install × %. Net = revenue - maintenance.
Beyond the number
Carbon, health, and local air quality don't show up on the calculator but often drive the decision. The financial figure is a lower bound on the value; the rest is whatever you'd pay for the non-financial benefits.
1,000kW × 35% × £0.15 - 3% × 20y = -68.02%.
Inputs
| Annual Generation kWh | 3,066,000 |
|---|---|
| Annual Net Revenue | $159,900.00 |
| Total Lifetime Revenue | $9,198,000.00 |
| Capacity Factor | 35.00% |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes annual energy generation by multiplying installed capacity in kilowatts by 8760 (hours per year) and the capacity factor expressed as a decimal. Annual revenue is then calculated by multiplying generated kilowatt-hours by the electricity price per unit. Annual maintenance costs are modeled as a fixed percentage of the initial installation cost. Net annual cash flow is derived by subtracting maintenance costs from revenue. This calculation repeats across the specified analysis period, treating the capacity factor, electricity price, and maintenance percentage as constant throughout. The model does not account for inflation, equipment degradation, financing costs, taxes, grid connection fees, or variability in actual tidal resource conditions. Results represent a simplified cash-flow projection and should not be interpreted as a guarantee of actual financial performance.
References
Frequently Asked Questions
Why so much more expensive than wind?
Best locations?
Predictable advantage?
Environmental impact?
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