Pricing, Subsidies & Financial ROI
How to calculate solar savings?
Reviewed by SolvSolar · Last reviewed:
Calculate annual solar savings as system size in kW multiplied by effective annual yield in kWh/kWp, multiplied by your electricity unit rate. Subtract any fixed charges that stay on the bill regardless of consumption. Project the figure across 25 years using a 2–5% annual tariff escalation and a 0.5% yearly panel degradation rate for a realistic lifetime number.