1. What is Solar Cost Per kWh?

The Solar Cost Per kWh calculation helps determine the levelized cost of electricity (LCOE) from your solar system over its lifetime. This metric allows comparison with grid electricity prices to assess financial benefits.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Total\ Cost \) — Complete system cost including installation (AUD)
• \( Lifetime \) — Expected operational lifespan of the system (years)
• \( Annual\ kWh \) — Estimated annual electricity generation (kWh)

Explanation: This calculation spreads the total system cost over its lifetime energy production to determine cost per unit of electricity.

3. Importance of Solar Cost Calculation

Details: Understanding your solar cost per kWh is crucial for evaluating the financial viability of your solar investment and comparing it with utility electricity rates.

4. Using the Calculator

Tips: Enter total system cost in AUD, expected lifetime in years, and estimated annual generation in kWh. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in total cost?
A: Include all expenses - solar panels, inverter, installation, permits, and any additional equipment.

Q2: What's a typical system lifetime?
A: Most quality systems last 20-25 years, though panels may continue producing beyond this at reduced efficiency.

Q3: How to estimate annual generation?
A: Use your installer's projections or online tools that consider your location, system size, and panel orientation.

Q4: What's a good cost per kWh in Australia?
A: As of 2023, solar costs typically range 8-15c/kWh, compared to grid electricity at 20-40c/kWh in most areas.

Q5: Does this include maintenance costs?
A: This basic calculation doesn't include ongoing costs. For more accuracy, add estimated maintenance to total cost.