1. What is the Cost Per kWh Equation?

The Cost Per kWh equation calculates the net cost per kilowatt-hour for solar energy by subtracting solar incentives from the utility rate. This helps determine the true cost of solar energy compared to traditional utility rates.

2. How Does the Calculator Work?

The calculator uses the Cost Per kWh equation:

Where:

• \( Utility\ Rate \) — The standard electricity rate from your utility company ($/kWh)
• \( Solar\ Incentive \) — Any incentives or credits received for solar production ($/kWh)

Explanation: The equation shows the net cost of electricity when accounting for solar incentives, which helps in evaluating the financial benefits of solar installations.

3. Importance of Cost Per kWh Calculation

Details: Calculating the net cost per kWh is crucial for understanding the true cost savings of solar energy systems, comparing different energy options, and making informed decisions about solar investments.

4. Using the Calculator

Tips: Enter the utility rate and solar incentive in dollars per kWh. Both values must be positive numbers. The calculator will show the net cost per kWh after incentives.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my utility rate?
A: Utility rates are typically listed on your electricity bill or available from your utility company's website.

Q2: What types of solar incentives are included?
A: This includes any per-kWh incentives like net metering credits, feed-in tariffs, or other production-based incentives.

Q3: Should I include upfront solar incentives in this calculation?
A: No, this calculator is for ongoing per-kWh costs and incentives. Upfront incentives should be considered separately in your overall ROI calculations.

Q4: How does this help in evaluating solar systems?
A: By showing the net cost of solar-produced electricity, you can compare it with utility rates to understand your savings potential.

Q5: Does this account for time-of-use rates?
A: For time-of-use rates, you may need to calculate this separately for different time periods when rates vary.