1. What is a Solar Cost per kWh Calculator?

Definition: This calculator determines the cost per kilowatt-hour (kWh) of solar energy produced by dividing the total system cost by the total energy output.

Purpose: It helps homeowners and businesses evaluate the economic efficiency of their solar power systems.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Cost per kWh — The price per unit of solar energy produced (currency/kWh)
• Total System Cost — The complete investment in the solar power system (currency)
• Total kWh Produced — The lifetime energy output of the system (kWh)

Explanation: This simple division gives the levelized cost of energy (LCOE), a standard metric for comparing energy sources.

3. Importance of Solar Cost Calculation

Details: Calculating cost per kWh helps:

• Compare solar with grid electricity costs
• Evaluate return on investment
• Make informed decisions about system size and financing

4. Using the Calculator

Tips:

• Include all system costs (panels, inverters, installation, permits)
• Use estimated lifetime production (typically 25-30 years)
• For annual cost, use yearly kWh production

5. Frequently Asked Questions (FAQ)

Q1: What's a good solar cost per kWh?
A: Generally below your local utility rate. National averages range from $0.08-$0.20/kWh.

Q2: Should I include incentives in total cost?
A: For true cost, use net price after rebates and tax credits.

Q3: How do I estimate total kWh production?
A: Multiply system size (kW) by local sun hours × 365 × system lifetime years.

Q4: Does this include maintenance costs?
A: Only if included in your total cost calculation.

Q5: How does this compare to utility rates?
A: Solar often becomes cheaper over time as utility rates rise while your system cost is fixed.