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Solar Cost Equation:
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The Price Per kWh Solar Calculator helps determine the cost efficiency of solar energy systems by calculating the price per kilowatt-hour (kWh) of energy produced. This metric is essential for comparing solar investments with traditional electricity costs.
The calculator uses the solar cost equation:
Where:
Explanation: This simple division gives you the cost per unit of energy produced, allowing for direct comparison with utility electricity rates.
Details: Calculating the price per kWh for solar energy is crucial for evaluating the financial viability of solar installations, comparing different system options, and understanding the return on investment for solar projects.
Tips: Enter the total system cost in dollars and the total energy produced in kWh. Both values must be positive numbers. The calculator will compute the price per kWh of solar energy.
Q1: What factors affect the price per kWh for solar?
A: System cost, installation expenses, panel efficiency, location, sunlight hours, and system lifespan all influence the final price per kWh.
Q2: How does solar price per kWh compare to utility rates?
A: Solar typically offers lower long-term costs, with prices ranging from $0.05-$0.15 per kWh compared to utility rates of $0.10-$0.30 per kWh in many regions.
Q3: Should maintenance costs be included?
A: For accurate calculations, include estimated maintenance costs over the system's lifetime in the total cost figure.
Q4: How long should the energy production period be?
A: Calculate based on the system's expected lifetime production (typically 25+ years) for the most accurate price per kWh.
Q5: Does this account for incentives and tax credits?
A: For net cost calculations, subtract available incentives and tax credits from the total system cost before calculating price per kWh.