Home
Back
Return On Solar Panels Formula:
| From: | To: |
The Return On Solar Panels Calculator Kwh calculates the return on investment for solar panels based on energy production, electricity rate, and installation cost. It helps determine the financial benefits of solar energy systems.
The calculator uses the formula:
Where:
Explanation: The formula calculates the percentage return by comparing the financial gain from energy production against the initial investment cost.
Details: Calculating return on solar panels helps homeowners and businesses evaluate the economic viability of solar investments, compare different solar options, and make informed financial decisions about renewable energy adoption.
Tips: Enter energy production in kWh, electricity rate in $/kWh, and installation cost in dollars. All values must be positive numbers for accurate calculation.
Q1: What is considered a good return on solar panels?
A: A return of 8-12% or higher is generally considered good for solar investments, though this may vary based on location and incentives.
Q2: How accurate is this calculation?
A: This provides a basic estimate. Actual returns may vary based on system performance, maintenance costs, and changing electricity rates.
Q3: Does this account for solar incentives and tax credits?
A: No, this is a basic calculation. For more accurate results, factor in local incentives, tax credits, and financing options.
Q4: What time period does this calculation cover?
A: This typically calculates annual return based on yearly energy production. For lifetime returns, use total energy production over system lifespan.
Q5: Should maintenance costs be included?
A: For more comprehensive calculations, ongoing maintenance costs should be subtracted from the energy savings before calculating return.