Based on the theory of life cycle cost, the model of life cycle cost of switchgear considering the value of time is established. The model includes calculation method of purchase cost, operation cost, failure cost, scrap cost and sensitivity analysis of switchgear. Different stages of the life cycle cost are analyzed and balance point between the quality and the purchasing cost is found. A practical example is illustrated to analyze the proportion and sensitivity of cost in different stages. The key factors of the life cycle cost of switchgear are found and the methods of reducing the life cycle cost of switchgear are put forward. This work is supported by National Key Research & Development Program of China “Techniques and Equipment of Smart Grid” (No. 2016YFB0901300).