Ultimate Solar Calculator

13 Jul Ultimate Solar Calculator

Calculator Terms

Solar project Cost, Size, and Electricity Production

• Annual kWh – the estimated amount of kilowatt-hours of electricity produced by the solar photovoltaic system every year.
• Nearest city – (To estimate the solar production factor)
• Annual output degrade – the annual decrease in the solar production of the solar photovoltaic system, typically 0.5%
• System size – the size of the solar photovoltaic system in kilowatts (kW)
• Cost per Watt – the cost of solar photovoltaic system, including hardware and labor, to install the solar photovoltaic system per Watt of capacity
• Total installed cost – self-evident, I hope
• 26% federal tax credit – the cash value of the 26% federal tax credit (available through 2021)
• State tax credit – state tax credit, if applicable
• Utility/State rebate – utility or state rebate, if applicable

Economic Assumptions

• General price inflation – estimated inflation in prices, for estimating the long-term investment value
• Discount rate – an economists calculation of the time value of money. Default of 8% suggests that you’d value 92¢ today as much as $1.00 next year
• Real discount rate – discount rate minus inflation rate
• Net metering rate per kWh – the price for solar energy produced, in dollars per kilowatt-hour. Typically the same rate as is paid for electricity from the utility.

Financing Terms

• Interest rate – the interest rate on the loan
• Down payment (financing terms) – the down payment on the loan
• year term – the term, in years, of the loan

Leasing Terms

• Down payment (leasing terms) – the down payment on the lease
• Lease price inflation – the annual increase in the lease payment
• 1st monthly payment – the initial monthly payment for the lease
• Electricity. price inflation – the expected annual increase in electricity prices (historically 3%, but higher in many areas in the past 5-10 years)
• 15-year buyout price – the price, in dollars, for a leasing customer to buy the solar array after the lease expires (if available)