FinToolSuite

Tidal Energy ROI Calculator

Updated April 17, 2026 · Green & Sustainable Finance · Educational use only ·

Tidal energy economics.

Calculate tidal energy ROI from install cost, capacity, capacity factor, and electricity price. Enter capacity kw and see the result instantly.

What this tool does

This tool calculates tidal energy ROI from install cost, capacity, capacity factor, electricity price, and maintenance.


Enter Values

Formula Used
Capacity
Capacity factor

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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

Try 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%. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Install Cost, Capacity (kW), Capacity Factor %, Electricity Price per kWh, and Maintenance % of Install Annual. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

Annual kWh = capacity × 8760 × CF. Revenue = kWh × price. Maintenance = install × %. Net = revenue - maintenance. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

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.

What this doesn't capture

Carbon reduction, health benefits, and local air quality have real value the financial figure doesn't price. The calculation gives the money side honestly; for the full picture, note the non-financial benefits alongside.

Example Scenario

1,000kW × 35% × £0.15 £ - 3% × 20y = -68.02%.

Inputs

Install Cost:10,000,000 £
Capacity (kW):1,000
Capacity Factor %:35
Electricity Price per kWh:0.15 £
Maintenance % of Install Annual:3
Analysis Years:20
Expected Result-68.02%

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

Annual kWh = capacity × 8760 × CF. Revenue = kWh × price. Maintenance = install × %. Net = revenue - maintenance.

Frequently Asked Questions

Why so much more expensive than wind?
Marine environment is harsh: corrosion, biofouling, storm damage. Installation requires specialist vessels (100k/day). Maintenance access expensive. Technology still developing - costs falling 5-10%/year but starting from high base. Will be competitive with offshore wind by ~2030 per industry forecasts.
Best locations?
Pentland Firth, Severn Estuary, Anglesey, Channel Islands, Strangford Lough. These have strong, consistent tidal flows. Coastal areas with weak tides won't generate enough to justify install cost.
Predictable advantage?
Yes - major advantage. Tides predictable to the minute, decades in advance. Solar/wind variable. Predictability worth premium price (CFD market) because grid operators value baseload-like generation. As intermittent renewables grow, predictable renewables become more valuable.
Environmental impact?
Lower than dam hydropower (no flooding) but concerns about marine wildlife (fish, mammals through turbines). Modern designs use slow-rotation turbines minimising harm. Environmental impact assessments required for all new installations.

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