Enter the annual energy generation (kWh), the annual price of electricity ($/kWh), and the cost of solar panels ($) into the Return on Solar Panels Calculator. The calculator will evaluate and display the Return on Solar Panels. 

Return on Solar Panels Formula

The following formula is used to calculate the Return on Solar Panels. 

ROSP = E*CE / CSP * 100

  • Where ROSP is the Return on Solar Panels (%/year)
  • E is the annual energy generation (kWh) 
  • CE is the annual price of electricity ($/kWh) 
  • CSP is the cost of solar panels ($) 

How to Calculate Return on Solar Panels?

The following example problems outline how to calculate Return on Solar Panels.

Example Problem #1

  1. First, determine the annual energy generation (kWh).
    • The annual energy generation (kWh) is calculated to be : 1500.
  2. Next, determine the annual price of electricity ($/kWh). 
    • The annual price of electricity ($/kWh) is measured to be: 1.25.
  3. Next, determine the cost of solar panels ($). 
    • The cost of solar panels ($) is found to be: 20,000.
  4. Finally, calculate the Return on Solar Panels using the formula above: 

ROSP = E*CE / CSP * 100

The values given above are inserted into the equation below and the solution is calculated:

ROSP = 1500*1.25 / 20,000 * 100 = 9.375 (%/year)

Example Problem #2

The variables needed for this problem are provided below:

annual energy generation (kWh) = 1700

annual price of electricity ($/kWh) = 1.5

cost of solar panels ($) = 10,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

ROSP = E*CE / CSP * 100 = (%/year)