Solar Savings Calculator — 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**
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.
- Daily production = 6 x 5 x 0.80 = 24 kWh
- Annual production = 24 x 365 = 8,760 kWh
- Annual savings = 8,760 x $0.14 = $1,226
- Break-even = $15,000 / $1,226 = 12.2 years