1. What is Cost per kWh?

The cost per kilowatt-hour (kWh) is a key metric for evaluating the economic efficiency of solar power systems. It represents the average cost to produce one unit of electrical energy, allowing for comparison with utility electricity rates.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• Total System Cost — Includes all installation and equipment costs ($)
• Total Energy Produced — Lifetime energy output of the system (kWh)

Explanation: This calculation gives you the levelized cost of energy (LCOE) for your solar system.

3. Importance of Cost per kWh Calculation

Details: Knowing your solar cost per kWh helps determine payback period, compare with utility rates, and assess the financial viability of your solar investment.

4. Using the Calculator

Tips: Enter your total system cost in dollars and estimated total energy production in kWh. For accurate results, use realistic estimates of system lifetime production.

5. Frequently Asked Questions (FAQ)

Q1: What should be included in total cost?
A: Include all equipment costs (panels, inverters, etc.), installation labor, permits, and any other system-related expenses.

Q2: How to estimate total kWh production?
A: Multiply system capacity (kW) by average sun hours per day × 365 × system lifetime in years × performance ratio (typically 0.75-0.85).

Q3: What's a good solar cost per kWh?
A: As of 2023, residential solar typically ranges $0.08-$0.15/kWh, depending on location and system size.

Q4: How does this compare to utility rates?
A: Compare your calculated cost to your current electricity rate to determine potential savings.

Q5: Does this account for incentives?
A: For net cost after incentives, subtract rebates and tax credits from your total cost before calculation.