1. What is Cost Per kWh in Solar?

The Cost Per kWh (kilowatt-hour) is a key metric that measures how much you pay for each unit of electricity produced by your solar system over its lifetime. It helps compare the cost-effectiveness of different solar installations.

2. How Does the Calculator Work?

The calculator uses a simple equation:

Where:

• Total Cost — The complete cost of the solar system including installation (USD)
• Total kWh Produced — The estimated lifetime energy production of the system (kWh)

Explanation: This calculation gives you the effective price you pay for each unit of electricity your system generates.

3. Importance of Cost Per kWh Calculation

Details: Knowing your solar cost per kWh allows you to compare with utility rates, calculate payback period, and evaluate the financial benefits of going solar.

4. Using the Calculator

Tips: Enter the total system cost in USD and estimated lifetime kWh production. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in Total Cost?
A: Include all costs - solar panels, inverters, mounting hardware, installation labor, permits, and any other system components.

Q2: How to estimate Total kWh Produced?
A: Multiply system size (kW) by annual sun hours in your location by system efficiency (typically 75-85%) by system lifespan (usually 25-30 years).

Q3: What's a good solar cost per kWh?
A: Currently, solar typically ranges from $0.05 to $0.15 per kWh, often cheaper than utility rates in many areas.

Q4: Does this include maintenance costs?
A: Only if you include them in your Total Cost calculation. Most residential systems have minimal maintenance costs.

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