1. What is a Solar System Savings Calculator?

Definition: This calculator estimates the financial savings from a solar power system based on panel power, sunlight hours, system performance, and electricity rates.

Purpose: It helps homeowners and businesses evaluate potential savings from solar panel installations.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Panel power (kW)
• \( H \) — Daily sunlight hours
• \( PR \) — Performance ratio (0-1)
• \( \text{Rate} \) — Electricity rate ($/kWh)

Explanation: The formula calculates energy production (kWh) and multiplies by electricity rate to determine monetary savings.

3. Importance of Solar Savings Calculation

Details: Accurate savings estimation helps evaluate return on investment, payback period, and system sizing for solar installations.

4. Using the Calculator

Tips: Enter panel power in kW, average daily sunlight hours, performance ratio (default 0.75), and your electricity rate (default $0.12/kWh).

5. Frequently Asked Questions (FAQ)

Q1: What is performance ratio (PR)?
A: PR accounts for system losses (typically 0.75-0.85). It includes factors like temperature, wiring losses, and inverter efficiency.

Q2: How do I find my daily sunlight hours?
A: Use NASA's solar database or local solar maps. Average is 4-6 hours in most US locations.

Q3: Should I use my current rate or future rates?
A: Consider using slightly higher future rates as electricity prices typically increase 2-3% annually.

Q4: Does this include incentives or tax credits?
A: No, this calculates gross savings before incentives. Add incentives separately for net cost analysis.

Q5: How accurate are these estimates?
A: They provide reasonable approximations. For precise estimates, consult a solar professional with detailed site analysis.