The main objective of this work is minimizing the cost of electricity of solid oxide fuel cell stacks by decelerating degradation mechanisms rate in long term operation for stationary power generation applications. The degradation mechanisms in solid oxide fuel cells are caused by microstructural changes, reactions between lanthanum strontium manganite and electrolyte, poisoning by chromium, carburization on nickel particles, formation of nickel sulfide, nickel coarsening, nickel oxidation, loss of conductivity and crack formation in the electrolyte. The rate of degradation mechanisms depends on the cell operating conditions (cell voltage and fuel utilization). In this study, the degradation based optimization framework is developed which determines optimum operating conditions to achieve a minimum cost of electricity. To show the effectiveness of the developed framework, optimization results are compared with the case that system operates at its design point. Results illustrate optimum operating conditions decrease the cost of electricity by 7.12%. The performed study indicates that degradation based optimization is a beneficial concept for long term performance degradation analysis of energy conversion systems. (C) 2016 Elsevier Ltd. All rights reserved.