Cost per kWh Formula:
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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.
The calculator uses the formula:
Where:
Explanation: The total installation cost is divided by the total expected energy production over the system's lifetime.
Details: This metric allows comparison between solar energy and utility electricity rates, helping determine return on investment.
Tips: Enter the total installation cost, estimated annual production in kWh, and expected system lifetime (default 25 years). All values must be > 0.
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.