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Solar Panel Cost Calculator per kWh

Cost per kWh Formula:

\[ \text{Cost per kWh} = \frac{\text{Install Cost}}{\text{kWh/year} \times \text{Lifetime}} \]

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1. What is a Solar Panel Cost Calculator per kWh?

Definition: This calculator estimates the cost per kilowatt-hour (kWh) of electricity generated by solar panels over their lifetime.

Purpose: It helps homeowners and businesses evaluate the long-term cost-effectiveness of solar panel installations.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ \text{Cost per kWh} = \frac{\text{Install Cost}}{\text{kWh/year} \times \text{Lifetime}} \]

Where:

Explanation: The total installation cost is divided by the total expected energy production over the system's lifetime.

3. Importance of Cost per kWh Calculation

Details: This metric allows comparison between solar energy and utility electricity rates, helping determine return on investment.

4. Using the Calculator

Tips: Enter the total installation cost, estimated annual production in kWh, and expected system lifetime (default 25 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's included in the install cost?
A: Include all equipment (panels, inverters), labor, permits, and other installation expenses.

Q2: How do I estimate kWh/year production?
A: Most installers provide this estimate based on your location, system size, and panel orientation.

Q3: What's a typical solar panel lifetime?
A: Most quality panels last 25-30 years, though production gradually decreases over time.

Q4: How does this compare to utility rates?
A: Compare your result to your current electricity rate to see potential savings.

Q5: Should I include maintenance costs?
A: Solar systems require minimal maintenance, but you could add 1-2% of install cost for accuracy.

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