rooftop solar roi calculator
Rooftop Solar ROI Calculator: Step-by-Step Guide
A realistic solar ROI model includes utility inflation and system degradation. This article shows how to estimate both.
How to calculate using Solar Cost Savings Calculator
- Start with current monthly electricity bill and expected solar offset percent.
- Enter net system cost inputs including incentive and yearly maintenance.
- Use inflation and degradation assumptions for long-term payback projection.
Solar Cost Savings Calculator formula
- Net system cost = gross system cost x (1 - incentive%).
- Annual offset value = monthly bill x 12 x offset%.
- Payback is the year cumulative net savings exceed net system cost.
Worked example
- Example: bill $180/month, 80% offset, system cost $16,000, incentive 30%.
- Net upfront cost = $11,200.
- First-year gross offset value = $1,728 before maintenance.
Accuracy and interpretation notes
- Use conservative assumptions for degradation and maintenance.
- For battery projects, include replacement cycle cost in analysis.
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