Solar System Cost Formula:
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Definition: This calculator estimates the total cost of a solar power system based on its size and the price per kilowatt.
Purpose: It helps homeowners, businesses, and solar installers quickly estimate solar system costs for budgeting and planning purposes.
The calculator uses the formula:
Where:
Explanation: The system size (in kW) is multiplied by the cost per kW to determine the total system price before incentives.
Details: Accurate cost estimation helps in financial planning, ROI calculations, and comparing different solar options and quotes.
Tips: Enter the system size in kW and price per kW (default $3,000/kW). All values must be > 0.
Q1: What's included in the price per kW?
A: Typically includes panels, inverters, mounting hardware, installation labor, permits, and sometimes monitoring equipment.
Q2: What's a typical price per kW?
A: Prices range from $2,500-$3,500 per kW in 2023, depending on location, equipment quality, and installation complexity.
Q3: Does this include tax credits or incentives?
A: No, this calculates gross cost. Deduct applicable incentives (like the 30% federal tax credit) separately.
Q4: How do I determine my needed system size?
A: Review your annual kWh usage and divide by your area's production ratio (typically 1.2-1.6).
Q5: Does this include battery storage?
A: No, this calculates grid-tied system costs only. Add 20-50% more for battery backup systems.