Solar Cost per kW Installed Calculator

Cost per kW Formula:

\[ \text{Cost per kW} = \frac{\text{Total Cost}}{\text{System Size (kW)}} \]

Cost per kW:

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1. What is Cost per kW?

Cost per kW is a standard metric in the solar industry that measures the cost efficiency of a solar installation. It represents how much you're paying for each kilowatt of solar capacity installed, allowing for easy comparison between different system sizes and quotes.

2. How the Calculator Works

The calculator uses a simple formula:

\[ \text{Cost per kW} = \frac{\text{Total Cost}}{\text{System Size (kW)}} \]

Where:

Total Cost — The complete installed cost of the solar system (including equipment, labor, permits, etc.)
System Size — The DC rating of the solar system in kilowatts (kW)

Explanation: This calculation gives you the dollar amount you're paying for each kilowatt of solar capacity, which is useful for comparing different solar proposals.

3. Importance of Cost per kW Calculation

Details: Calculating cost per kW helps you understand the value of a solar proposal. Lower cost per kW generally indicates better value, though other factors like equipment quality and installer reputation should also be considered.

4. Using the Calculator

Tips: Enter the total installed cost of your solar system (before incentives) and the system size in kW. Both values must be positive numbers. The calculator will automatically compute the cost per kW.

5. Frequently Asked Questions (FAQ)

Q1: What is a good cost per kW for solar?
A: As of 2023-2024, typical residential solar costs range from $2.50 to $3.50 per watt ($2,500-$3,500 per kW) before incentives, though prices vary by location and system specifics.

Q2: Does cost per kW include tax credits?
A: No, cost per kW is typically calculated before any tax credits or incentives are applied, allowing for direct comparison between systems.

Q3: Why compare cost per kW instead of total cost?
A: Cost per kW normalizes for system size, allowing you to compare the value of different sized systems on an equal basis.

Q4: Should I always choose the lowest cost per kW?
A: Not necessarily. While cost is important, also consider equipment quality, warranty terms, and installer reputation when making your decision.

Q5: How does cost per kW relate to payback period?
A: Generally, lower cost per kW leads to faster payback, but your actual payback period also depends on your electricity rates, usage patterns, and local incentives.