Return on Solar Panels Calculator

Formula

To calculate the Return on Solar Panels:

\[ ROSP = \left(\frac{E \times CE}{CSP}\right) \times 100 \]

Where:

$ROSP$ is the Return on Solar Panels (%/year)
$E$ is the Annual Energy Generation (kWh)
$CE$ is the Annual Price of Electricity ($/kWh)
$CSP$ is the Cost of Solar Panels ($)

What is Return on Solar Panels?

Return on Solar Panels (ROSP) is a measure of the financial benefit of installing solar panels. It represents the annual return on investment as a percentage of the initial cost of the solar panels. This calculation helps to determine how effective the solar panels are at generating financial returns through energy savings.

Example Calculation

Let's assume the following values:

Annual Energy Generation ($E$) = 5000 kWh
Annual Price of Electricity ($CE$) = 0.10 $/kWh
Cost of Solar Panels ($CSP$) = 20000 $

Using the formula:

\[ ROSP = \left(\frac{5000 \times 0.10}{20000}\right) \times 100 = 2.5\% \]

The return on solar panels is 2.5% per year.