Solar Savings Calculator
Estimate annual savings and break-even time from installing a residential solar panel system.
Risparmi Annui
$1,226
Annual Savings vs Electricity Rate
Formula
## How Solar Savings Are Calculated Solar panels produce electricity based on system size, sunlight hours, and system efficiency (typically ~80%). ### Formula **Daily Production = System kW x Sun Hours x 0.80 (efficiency)** **Annual Savings = Daily Production x 365 x Electricity Rate** **Break-Even = System Cost / Annual Savings**
Esempio Risolto
6 kW system, 5 sun hours/day, $0.14/kWh, $15,000 cost after incentives.
- 01Daily production = 6 x 5 x 0.80 = 24 kWh
- 02Annual production = 24 x 365 = 8,760 kWh
- 03Annual savings = 8,760 x $0.14 = $1,226
- 04Break-even = $15,000 / $1,226 = 12.2 years
Domande Frequenti
What are peak sun hours?
Peak sun hours are the equivalent hours of full-intensity sunlight per day. Most US locations get 3-6 peak sun hours. Check the NREL solar resource map for your area.
What is the 30% federal tax credit?
The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of solar installation costs from your federal taxes. Factor this into the system cost.
Do solar panels work on cloudy days?
Yes, but at reduced output (10-25% of peak). Annual production estimates account for weather variability through the peak sun hours metric.
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