The EWI Levelized Cost of Heating (LCOH) tool enables the comparison of different heating technologies based on their total life cycle costs. It calculates the heat production costs in ct/kWh and the average annual costs, taking into account investment, operating, fuel, and CO₂ costs. Building-specific parameters such as location, age, building type, and economic assumptions regarding interest rates and energy price trends can be entered individually. The calculations are based on weather and usage data in accordance with DIN V 18599 and technology-specific cost values.
The tool covers eight common heating technologies—natural gas and biogas heating, various heat pumps, pellet heating, and hybrid heating. The useful heat demand is calculated based on the monthly balance method and takes heat losses and gains into account. In addition, government subsidy rates and individual modernization scenarios can be included in order to realistically reflect the economic viability of climate-friendly heating options. The results are presented as annualized full costs and levelized cost of heating and shown for various reference years up to 2045. The tool thus provides a sound basis for investment decisions in private residential buildings.