Enter the total cost of the system, the number of solar panels, and the expected value of the electricity the panels will produce into the calculator to determine the cost per solar panel.

Cost Per Solar Panel Formula

The following equation is used to calculate the Cost Per Solar Panel.

CPS = (CS - VE) / SP
  • Where CPS is the cost per solar panel ($/panel)
  • CS is the cost of the entire system ($)
  • VE is the expected value of the electricity generated by the solar panels ($)
  • SP is the number of solar panels

To calculate the cost per solar panel, subtract the value of the energy generated from the total cost of the system, then divide it by the number of panels.

What is the Cost Per Solar Panel?

Definition:

The average cost of one solar panel is between $100.00 and $500.00 dollars. However, the true cost of a solar panel must take into account the value of the electricity that it will produce.

For example, if the panels produce enough electricity to power your home year-round, you will no longer have an electricity bill, which must be subtracted from the system cost.

How to Calculate Cost Per Solar Panel?

Example Problem:

The following example outlines the steps and information needed to calculate the cost per solar panel.

First, determine the cost of the entire system. In this example, the entire system costs $15,000.00.

Next, determine the expected energy savings from the solar panels. Over the lifetime, this is expected to be $10,000.00.

Next, determine the number of solar panels in the system. In this case, the system has 100 panels.

Finally, calculate the cost per panel using the formula above:

CPS = (CS – VE) / #SP

CPS = (15,000- 10,000) / 100

CPS = $50/panel

FAQ

What factors influence the cost of a solar panel system?

The cost of a solar panel system can be influenced by several factors including the quality and efficiency of the solar panels, the size of the system (number of solar panels), installation costs, potential government incentives or rebates, and the geographical location which can affect the amount of sunlight the panels receive.

How does the expected value of electricity generated affect the overall cost of solar panels?

The expected value of electricity generated by solar panels directly impacts the overall cost by offsetting the initial investment. The more electricity your solar panels can generate, the less you will rely on the grid, thereby saving on your electricity bills. These savings are subtracted from the total cost of the system to give a more accurate cost per panel over its lifetime.

Can the efficiency of solar panels change over time?

Yes, the efficiency of solar panels can decrease over time due to factors such as wear and tear, exposure to the elements, and technological aging. Most solar panels are expected to decrease in efficiency at a rate of about 0.5% to 1% per year. However, high-quality solar panels can maintain a higher level of efficiency for a longer period.