1. What is Solar Cost Per kWh?

The solar cost per kWh is a measure of the levelized cost of electricity (LCOE) from your solar system over its lifetime. It helps compare the cost of solar energy to utility rates and other energy sources.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Total\ Cost \) — Total installed cost of solar system ($)
• \( Annual\ kWh \) — Expected annual energy production (kWh)
• 25 — Typical system lifespan in years

Explanation: The equation calculates the average cost per kWh by spreading the total system cost over its expected lifetime production.

3. Importance of Cost Per kWh Calculation

Details: Calculating cost per kWh helps determine the financial viability of solar, compare with utility rates, and evaluate return on investment.

4. Using the Calculator

Tips: Enter total installed system cost (after incentives) and expected annual kWh production. For accurate results, use professional estimates of your system's production.

5. Frequently Asked Questions (FAQ)

Q1: Why use 25 years in the calculation?
A: Most solar panels come with 25-year performance warranties, though they may last longer. This provides a standard comparison period.

Q2: What's a good solar cost per kWh in California?
A: Currently, solar costs between $0.08-$0.15 per kWh in California, typically lower than utility rates of $0.20-$0.40 per kWh.

Q3: Should I include incentives in the total cost?
A: Yes, use your net cost after federal tax credits, state rebates, and other incentives.

Q4: How do I estimate annual kWh production?
A: Your solar installer can provide this estimate based on system size, location, roof orientation, and shading.

Q5: Does this include maintenance costs?
A: This basic calculation doesn't include maintenance, which is typically minimal (about 0.5% of system cost annually).