1. What is Cost per kWh?

The cost per kilowatt-hour (kWh) is a key metric in solar power generation that measures how much you're paying for each unit of electricity produced. It helps compare the economic efficiency of different solar installations.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• Total Cost — The complete investment in your solar power system (in dollars)
• kWh Generated — Total electricity produced by the system (in kilowatt-hours)

Explanation: This calculation gives you the average cost for each unit of electricity your system produces over its lifetime.

3. Importance of Cost per kWh Calculation

Details: Knowing your cost per kWh helps you understand the financial performance of your solar investment, compare with utility rates, and evaluate return on investment.

4. Using the Calculator

Tips: Enter your total system cost (including installation) and the total kWh generated over the period you want to analyze. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What costs should be included in Total Cost?
A: Include all equipment costs, installation fees, permits, and any other upfront expenses. You may also include maintenance costs if calculating lifetime cost.

Q2: How do I estimate lifetime kWh generation?
A: Multiply your system's annual kWh production by its expected lifespan in years. Most solar panels have 25+ year warranties.

Q3: What's a good cost per kWh for solar?
A: As of 2023, residential solar typically ranges $0.05-$0.15/kWh, often cheaper than utility rates in many areas.

Q4: How does this compare to LCOE (Levelized Cost of Energy)?
A: This is a simplified version of LCOE, which would also account for discount rates and inflation over time.

Q5: Should I include incentives in my cost calculation?
A: For true out-of-pocket cost, subtract any tax credits or rebates from your total cost before calculating.