Solar Cost Per kWh Formula:
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The Solar Cost Per kWh calculation helps determine the levelized cost of electricity (LCOE) from a solar PV system in Malaysia. It represents the average cost per kilowatt-hour of generated electricity over the system's lifetime.
The calculator uses the following equation:
Where:
Explanation: This calculation spreads the total system cost over its expected lifetime energy production to determine the cost per unit of electricity generated.
Details: Calculating solar cost per kWh is essential for comparing solar PV systems with grid electricity and other generation options, evaluating return on investment, and making informed decisions about solar adoption.
Tips: Enter total system cost in RM, expected lifetime in years (typically 20-25 years), and estimated annual generation in kWh. All values must be positive numbers.
Q1: What should be included in total cost?
A: Include all capital costs - solar panels, inverters, mounting, wiring, installation, permits, etc. You may also include financing costs if applicable.
Q2: What's a good solar cost per kWh in Malaysia?
A: As of 2024, residential solar typically ranges RM0.25-0.40/kWh, which is competitive with grid electricity prices.
Q3: How to estimate annual generation?
A: Multiply system capacity (kW) by local solar irradiation (kWh/m²/year) and system performance ratio (typically 0.75-0.85).
Q4: Does this include maintenance costs?
A: This simple version doesn't include ongoing costs. For more accuracy, you could add estimated maintenance to total cost.
Q5: How does this compare to SEDA's calculations?
A: SEDA uses similar methodology but may include more detailed financial assumptions like discount rates.