1. What is a Solar Cost per kWh Calculator?

Definition: This calculator determines the cost per kilowatt-hour (kWh) of energy produced by a solar system.

Purpose: It helps homeowners and businesses evaluate the financial efficiency of solar installations 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 cost of solar system ($ or ₱)
• \( E_{kWh} \) — Total energy production (kWh)

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

3. Importance of Solar Cost per kWh Calculation

Details: This calculation 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 installed cost of your solar system and the total expected energy production over its lifetime. Both values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What should be included in the total solar system cost?
A: Include all equipment costs (panels, inverters, batteries), installation fees, permits, and any financing costs.

Q2: How do I estimate total energy production?
A: Multiply system capacity (kW) by annual sun hours in your location by system lifetime in years, adjusting for efficiency losses.

Q3: What's a good cost per kWh for solar?
A: Typically below $0.10/kWh in sunny areas, but compare with your local utility rates for meaningful evaluation.

Q4: Does this include maintenance costs?
A: Only if you include them in your total system cost. For complete analysis, factor in maintenance over the system's lifetime.

Q5: How does this compare to LCOE (Levelized Cost of Energy)?
A: This is a simplified version of LCOE. For more accurate analysis, consider time value of money and other financial factors.