Solar Cost per kWh Calculator
Work out what each kWh from your panels costs over their life and compare it with your electricity price.
Your result
Enter your numbers and press the button. Your result appears here.
Divide what the system costs by everything it will produce and you get its price per kWh. Compare that with the price on your electric bill.
How it works
Cost per kWh = (net cost + upkeep) ÷ lifetime kWh, with output falling by the panel loss rate each year.
Example: 8 kW at $2.60 per watt makes 257,608 kWh over 25 years, about 8.1¢ per kWh.
At a glance
Same settings as the calculator, changing only the price per watt.
| Price per watt | Cost per kWh | Lifetime kWh |
|---|---|---|
| $2.00 | 6.2¢ | 257,608 |
| $2.25 | 7.0¢ | 257,608 |
| $2.50 | 7.8¢ | 257,608 |
| $2.75 | 8.5¢ | 257,608 |
| $3.00 | 9.3¢ | 257,608 |
| $3.50 | 10.9¢ | 257,608 |
Common questions
What is a good cost per kWh for solar?
Anything below the price you pay the utility means solar is cheaper over its life. At U.S. averages it works out to about 8¢ per kWh over 25 years.
Is there still a federal solar tax credit?
Not for homeowners who buy their system. The 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. Leased systems and PPAs can still carry a business credit (48E) that the installer claims.
Sources
- EnergySage, Solar panel cost by state (updated November 6, 2026): https://www.energysage.com/local-data/solar-panel-cost/
- NREL PVWatts v8 (20° tilt, south-facing, 14% losses), state results compiled by TheGreenWatt: https://thegreenwatt.com/average-peak-sun-hours-by-state/
- NREL, Jordan and Kurtz, Photovoltaic Degradation Rates: An Analytical Review: https://docs.nrel.gov/docs/fy12osti/51664.pdf