SAM reports several "levelized" values. A levelized value is the present value of an array of annual values. It is a series of future values expressed as a present value using a discount rate that represents the time value of money. In general, a levelized value is calculated from an array of annual values as follows:
Where:
| L | Levelized value |
| A | Annual values |
| n | Year |
| N | Analysis period |
| d | Discount rate |
The form of the levelized value depends on the form of the discount rate used in the equation: A nominal discount rate results in a nominal levelized value, and a real discount rate results in a real levelized value. For a discussion of real and nominal values, see Real and Nominal Levelized Cost of Energy.
For more about the following levelized values, see the detailed descriptions:
•Levelized Cost of Energy (LCOE)
