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.
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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
- First, determine the annual energy generation (kWh).
- The annual energy generation (kWh) is calculated to be : 1500.
- Next, determine the annual price of electricity ($/kWh).
- The annual price of electricity ($/kWh) is measured to be: 1.25.
- Next, determine the cost of solar panels ($).
- The cost of solar panels ($) is found to be: 20,000.
- 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)
