1. What is Solar Cost Per kWh?

The Solar Cost Per kWh calculation helps determine the cost-effectiveness of a solar power system by calculating how much each kilowatt-hour of electricity costs over the system's lifetime.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Total\ Cost \) — Total cost of the solar system installation
• \( Lifetime \) — Expected lifetime of the solar system in years
• \( Annual\ kWh \) — Expected annual electricity generation in kilowatt-hours

Explanation: This calculation spreads the total system cost over its expected lifetime energy production to determine the cost per unit of energy.

3. Importance of Solar Cost Calculation

Details: Calculating cost per kWh helps compare solar energy costs with utility rates, evaluate return on investment, and make informed decisions about solar installations.

4. Using the Calculator

Tips: Enter the total system cost in dollars, expected lifetime in years, and estimated annual generation in kWh. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in total cost?
A: Include all equipment costs (panels, inverters), installation, permits, and any financing costs.

Q2: What's a typical solar system lifetime?
A: Most systems are warrantied for 25 years, but can often last 30+ years with proper maintenance.

Q3: How do I estimate annual kWh?
A: Your installer can provide estimates based on system size, location, and panel orientation.

Q4: What's a good cost per kWh?
A: Competitive with or below your local utility rates. National averages are typically $0.08-$0.15/kWh.

Q5: Does this include maintenance costs?
A: For more accurate results, you could add estimated maintenance costs to the total system cost.