How to Calculate Cost per kWh Solar

Solar Cost per kWh Formula:

\[ C_{solar} = \frac{\text{Total Cost}}{E_{lifetime}} \]

Cost per kWh (C_solar):

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1. What is Solar Cost per kWh?

Solar cost per kWh is a metric that calculates the levelized cost of electricity from a solar power system over its lifetime. It helps compare the cost-effectiveness of solar energy with other energy sources.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ C_{solar} = \frac{\text{Total Cost}}{E_{lifetime}} \]

Where:

$ C_{solar} $ — Cost per kWh ($/kWh)
$ \text{Total Cost} $ — Total system cost including installation ($)
$ E_{lifetime} $ — Total energy produced over system lifetime (kWh)

Explanation: This simple division gives you the average cost per unit of electricity generated by your solar system over its entire operational life.

3. Importance of Solar Cost Calculation

Details: Calculating solar cost per kWh is essential for evaluating the financial viability of solar investments, comparing with grid electricity prices, and making informed decisions about renewable energy adoption.

4. Using the Calculator

Tips: Enter the total installed cost of your solar system in dollars and the estimated lifetime energy production in kWh. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What should be included in the total cost?
A: Include all costs associated with the solar installation: panels, inverters, mounting hardware, installation labor, permits, and any additional equipment.

Q2: How do I estimate lifetime energy production?
A: Multiply the system's rated capacity by average daily sun hours, then by 365 days, and finally by the expected system lifetime in years.

Q3: What is a good solar cost per kWh?
A: Typically, residential solar systems achieve $0.08-0.15 per kWh, which is competitive with or lower than grid electricity in many regions.

Q4: Does this include maintenance costs?
A: The basic formula doesn't include ongoing maintenance. For a more accurate calculation, you should add estimated maintenance costs to the total cost.

Q5: How long is a typical solar system lifetime?
A: Most quality solar panels are warrantied for 25 years and can continue producing electricity for 30+ years with minimal degradation.