1. What is a Solar Energy Savings Calculator?

Definition: This calculator estimates the cost savings from solar power generation based on the amount of energy produced and the local electricity rate.

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

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Savings \) — Cost savings in dollars
• \( E_{solar} \) — Energy produced by solar panels (kWh)
• \( Rate \) — Electricity rate (dollars per kWh)

Explanation: The solar energy production is multiplied by the electricity rate to determine the monetary value of the energy generated.

3. Importance of Solar Savings Calculation

Details: Calculating solar savings helps evaluate return on investment, compare with utility costs, and justify solar system installations.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my solar energy production?
A: Check your solar monitoring system or inverter display for daily/monthly production data.

Q2: What electricity rate should I use?
A: Use your current utility rate (found on your electricity bill) that you're offsetting with solar.

Q3: Does this include net metering credits?
A: This calculates direct savings. For net metering, use your utility's credit rate instead of retail rate.

Q4: Can I calculate annual savings?
A: Yes, input your annual solar production and rate to get yearly savings.

Q5: What other factors affect actual savings?
A: System degradation, shading, panel orientation, and changing electricity rates can all impact savings.