The balance-sheet Levelized Cost of Electricity (LCOE) model calculates the cashflows each year for a geothermal business. It very flexibly incorporates changing costs and power generation values for each year in a plant lifetime while making fewer assumptions. For instance, the balancesheet model can easily account for non-levelized MACRS depreciation tax incentives which often only occur within the first six years of a geothermal plant's operation.