How this calculation works
- Annual production (kWh) ≈ kW × peak sun hours × 365 × derate.
- Year-1 savings ≈ production × $/kWh. That assumes you get retail-like value for every kWh, which is not true under all tariffs.
- Gross cost = kW × 1000 × $/W. Net cost applies your incentive percent. Simple payback = net cost / year-1 savings (if savings > 0).
kWh/yr = kW × sunHours × 365 × derate; net$ = kW×1000×$/W × (1 − incentive%); payback = net$ / (kWh/yr × rate)
What to do next
- Compare this production to a PVWatts or designer report for the same kW and address.
- Read your utility’s net metering or net billing rider. Export credits may be far below retail.
- If payback uses a 30% credit you cannot take this year, rerun with 0% or a realistic percent.
FAQ
- Why is the default incentive 0%?
- Because eligibility and rates change, and a tax credit is not cash at closing for every household. Typing the percent you actually expect is more honest than a hardcoded marketing number.
- Does this include battery storage?
- No. Add battery cost into a higher $/W or treat it as a separate project. Backup value is not the same as kWh savings.
Sources
- Annual kWh ≈ system kW × peak sun hours/day × 365 × derate. Simple payback = net cost / annual $ savings
Cost defaults are typical US planning bands, last reviewed 2026-08-25. Edit the price fields on this page rather than treating them as a local market index.