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While We Build the Full Calculator
Our interactive rate calculator is in development. In the meantime, here’s how to calculate your own numbers — using the same methodology any honest installer uses.
Step 1: Find Your Effective Rate
Grab last month’s electric bill.
Your effective rate = Total bill amount ÷ Total kWh used
Example: $187 total ÷ 1,100 kWh = $0.17/kWh effective rate
This is the actual value of each kilowatt-hour your solar system will produce — and it’s almost always higher than the “rate” printed on your bill, because utility bills bury fees and charges that add up.
Step 2: Estimate Your Annual Usage
Most families use 10,000–15,000 kWh per year. High-AC households in hot climates often run 18,000–24,000 kWh.
Find your 12-month total on your utility’s online portal or add up 12 months of bills.
Step 3: Size Your System
A rough rule: 1 kW of solar produces approximately 1,200–1,800 kWh per year depending on your location.
NREL’s PVWatts calculator (pvwatts.nrel.gov) gives precise production estimates for any US address — free, government-produced data.
To offset 12,000 kWh/year in a region with 1,400 kWh/kW:
- 12,000 ÷ 1,400 = 8.6 kW system
Step 4: Calculate Your Return
| Input | Your Number |
|---|---|
| System size (kW) | |
| Estimated cost ($/W × system kW) | |
| After 30% ITC | |
| After 40% ITC (if American-made) | |
| Annual kWh savings | |
| Annual dollar savings (kWh × effective rate) | |
| Simple payback (net cost ÷ annual savings) |
Step 5: Get a Real Proposal
Ready for custom numbers? Connect with a vetted local installer for a free, no-obligation proposal based on your actual roof, usage, and local incentives.
Reference: Key Data Sources
- NREL PVWatts: pvwatts.nrel.gov — Free solar resource calculator for any US address
- DSIRE: dsireusa.org — Your state’s current solar incentives and net metering policy
- IRS Form 5695: IRS.gov — How to claim the Investment Tax Credit
- EIA: eia.gov/electricity — Your utility’s historical rate data
DATA SOURCED FROM: NREL PVWatts calculator — Production estimates by location; U.S. Energy Information Administration (EIA) — Rate data, historical escalation; IRS.gov — Form 5695 (Investment Tax Credit guidance)