How does the Solar Savings Calculator work?
The calculator multiplies monthly solar production by the entered electricity value and value factor, then subtracts the monthly solar-system cost. If you first need an approximate panel count, use the Solar Panel Calculator.
What is the solar production value factor?
The value factor represents the share of generated kWh that you want to value at the entered $/kWh. Set it to 100% only when that assumption matches your situation. For a baseline electricity-price scenario, compare your bill with the Electricity Bill Calculator or kWh Cost Calculator.
What does net solar savings mean?
Net monthly savings equals the modeled value of solar electricity minus the monthly solar-system cost you enter. The annual figure multiplies that monthly scenario by 12. To compare against total household energy spending, use the Home Energy Cost Calculator.
Why can real solar savings differ?
Actual savings depend on production, self-consumption, utility rate design, export compensation, fixed charges, system financing, maintenance, degradation, taxes, incentives and future rate changes. The Electricity Cost Calculator can help isolate individual loads that solar may offset.
Frequently asked questions about Solar Savings
It lets you apply the entered $/kWh value to only a selected percentage of the modeled solar production.
Only if that matches how the generated energy is valued in your situation. Exported energy may be credited differently from self-consumed energy.
No. Entered monthly system cost should reflect whatever financing or ownership cost you want to model.
No. It estimates monthly and annual net savings for the entered assumptions.
Yes. If the entered monthly system cost exceeds the modeled energy value, net savings will be negative.
No. It uses the monthly production you enter and does not automatically reduce production over time.
No. Fixed utility charges should be considered separately because solar may not eliminate them.
Yes. Actual monthly production can make the scenario more specific than a generic production estimate.
Sources and methodology
The calculator uses the transparent formula described on this page and the values you enter. These authoritative U.S. resources provide context for electricity, home energy, solar, efficiency or safety topics related to this tool.