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How to Calculate Solar Cost per kWh
How to Calculate Solar Cost per kWh

How to Calculate Solar Cost per kWh

Emilie avatar
Written by Emilie
Updated yesterday

In Enerflo, we show the cost for solar based on the Price Per Watt (PPW). However, sometimes Sales Reps want to know what the solar cost is per kWh since that is what the utility companies show and the customer can relate to that number. This is not a calculation we have readily available. Here is how to estimate that.

The formula is Cost of the Solar System divided by Solar Energy Produced

So how do we know what the Solar Energy Produced is? Here is a standard calculation for Solar energy produced over 20 years:

5kW x 5.62kWh of sun daily x 365 days x 20 years x 80% efficiency = 164,000kWh

Now that the Solar Energy Produced number is estimated the Sales Rep just needs to divide it by the Cost of the Solar System. Here is an example:

$14,500 / 164,000kWh = 9¢/kWh (this is rounded up from 0.088)

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