1. What is the Solar Savings Calculation?

The solar savings calculation estimates your financial savings from a solar panel system by comparing the value of electricity generated to the system cost.

2. How Does the Calculator Work?

The calculator uses the solar savings equation:

Where:

• \( Generation \) — kWh of electricity generated by your solar system
• \( Rate \) — Current electricity rate in $/kWh
• \( Cost \) — Total cost of your solar system

Explanation: The equation calculates your net savings by subtracting the system cost from the value of electricity generated.

3. Importance of Solar Savings Calculation

Details: Understanding potential savings helps evaluate the financial viability of solar panel installation and estimate payback period.

4. Using the Calculator

Tips: Enter accurate values for kWh generated, current electricity rate, and total system cost. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What time period does this calculation cover?
A: This calculates savings for the period matching your generation input (typically annual savings).

Q2: Should I include incentives in the cost?
A: Use your net system cost after applying all tax credits, rebates, and incentives.

Q3: How do I estimate my kWh generation?
A: Solar installers provide estimates, or you can use PVWatts Calculator from NREL.

Q4: Does this account for electricity rate changes?
A: No, this uses current rates. For long-term projections, account for expected rate increases.

Q5: What other factors affect actual savings?

A: System degradation, shading, panel orientation, local weather patterns, and changes in electricity usage patterns.