| Component Cost | Centralized Generation | Decentralized Generation | Localized Generation |
| Capital cost | Per unit low cost | Cost is high for every unit. Cost saving through system design and capacity reduction. | Per unit cost is high. Life time cost savings from utility bills. |
| Maintenance and Operational cost (Fixed) | Higher | Lower | Lower |
| Maintenance and Operational cost (Variable) | Lower | Higher | Lower |
| Fuel | Highly required | Not required | Not required |
| Transmission | Mandatory high voltage transmission Failure of transmission and high losses | Only distribution is needed Decreased cost of capital | Production is close to end-users. Cost saving on distribution. |
| Unnecessary Expenses based on unserved energy | High | Low | Very low |