1. What is a Solar Power Savings Calculator?

Definition: This calculator estimates the financial savings from solar panel energy generation based on system parameters and local electricity rates.

Purpose: It helps homeowners and businesses evaluate the potential financial benefits of installing solar panels.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Panel power (kilowatts)
• \( H \) — Daily sunlight hours
• \( PR \) — Performance ratio (system efficiency, 0-1)
• \( Rate \) — Electricity rate (dollars per kWh)

Explanation: The formula calculates daily savings by multiplying energy production (P × H) by system efficiency (PR) and the value of that energy (Rate).

3. Importance of Solar Savings Calculation

Details: Accurate savings estimation helps determine payback period, return on investment, and whether solar is financially viable for your location.

4. Using the Calculator

Tips: Enter panel power in kW, average daily sunlight hours, system performance ratio (default 0.75), and your electricity rate. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical performance ratio?
A: Most systems have PR between 0.70-0.85. 0.75 is a good default for residential systems.

Q2: How do I find my daily sunlight hours?
A: Check solar insolation maps for your location or use 4-6 hours as a general estimate for most US locations.

Q3: Does this include all savings?
A: This calculates direct energy savings. Additional savings may come from net metering, tax credits, or increased property value.

Q4: How accurate is this estimate?
A: It provides a basic estimate. For precise numbers, consult a solar installer with detailed shading analysis.

Q5: What about system degradation over time?
A: Most systems degrade about 0.5% annually. These calculations assume first-year performance.