1. What is Cost per kWh Solar Calculator?

Definition: This calculator determines the cost per kilowatt-hour for solar energy based on total system cost and energy output.

Purpose: It helps homeowners and businesses evaluate the financial efficiency of solar power systems by calculating the cost per unit of energy produced.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( C_{kWh} \) — Cost per kilowatt-hour ($/kWh or ₱/kWh)
• \( C_{solar} \) — Total solar system cost including installation and maintenance ($ or ₱)
• \( E_{kWh} \) — Total energy output over system lifetime (kWh)

Explanation: The total system cost is divided by the total energy production to determine the cost per unit of energy.

3. Importance of Cost per kWh Calculation

Details: This metric allows comparison between solar energy and grid electricity costs, helping determine return on investment and payback period.

4. Using the Calculator

Tips: Enter the total solar system cost (including installation and maintenance) and the estimated total energy output over the system's lifetime. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What costs should be included in C_solar?
A: Include all costs - solar panels, inverters, installation, permits, maintenance, and any financing costs.

Q2: How do I estimate total energy output (E_kWh)?
A: Multiply system capacity (kW) by annual production hours (location-dependent) by system lifetime (years).

Q3: What's a good cost per kWh for solar?
A: Typically $0.05-$0.15/kWh is competitive with grid electricity in many areas.

Q4: Should I include government incentives?
A: For true cost calculation, use net cost after incentives. For comparison with utility rates, use pre-incentive cost.

Q5: How does this compare to LCOE (Levelized Cost of Energy)?
A: This is a simplified version of LCOE that doesn't account for time value of money or degradation.