1. What is a Solar Electricity Saving Calculator?

Definition: This calculator estimates the monetary savings from using solar energy instead of grid electricity.

Purpose: It helps homeowners and businesses evaluate the financial benefits of solar panel installations.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Savings \) — Money saved by using solar ($)
• \( E_{solar} \) — Energy produced by solar system (kWh)
• \( Rate \) — Cost of grid electricity ($/kWh)

Explanation: The solar energy production is multiplied by the local electricity rate to determine the equivalent savings.

3. Importance of Solar Savings Calculation

Details: Accurate savings estimation helps justify solar investments, calculate payback periods, and compare with utility costs.

4. Using the Calculator

Tips: Enter the solar energy production in kWh and your local electricity rate (default $0.12/kWh). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my electricity rate?
A: Check your utility bill or contact your electricity provider for current rates.

Q2: Does this include solar incentives?
A: No, this calculates direct savings from energy production. Add tax credits or rebates separately.

Q3: How do I estimate my solar energy production?
A: Multiply your system size (kW) by peak sun hours in your location and system efficiency.

Q4: Should I use my full retail rate?
A: For net metering, use the full rate. For feed-in tariffs, use the specific buyback rate.

Q5: Does this account for time-of-use rates?
A: No, for TOU rates you would need to calculate savings for each rate period separately.