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)