How to use the Solar ROI Analysis
The Formula
Year-1 kWh declines by your degradation % each year. Savings blend self-consumed kWh at retail with exports at your net-metering rate—both escalating with inflation. Break-even is when cumulative savings repay net install cost after incentives.
Practical Example
Simple NPV discounts annual savings at your inflation %. The chart compares net solar savings (green) with cumulative grid spend if you never installed (dashed)—crossing zero marks payback.
About Solar ROI Analysis
20-year financial model
Year-1 kWh declines by your degradation % each year. Savings blend self-consumed kWh at retail with exports at your net-metering rate—both escalating with inflation. Break-even is when cumulative savings repay net install cost after incentives.
NPV & status quo
Simple NPV discounts annual savings at your inflation %. The chart compares net solar savings (green) with cumulative grid spend if you never installed (dashed)—crossing zero marks payback.
Frequently asked questions
Q: Include tax credits? A: Toggle $ fixed or % percentage (e.g. 30% ITC). Q: Shading? A: Run Solar Shading Analysis first. Q: vs. Degradation ROI? A: That tool sizes from kWp; this one accepts direct annual kWh and export rates.