Solar Savings Calculator
Estimate how much electricity your solar panels could generate and what that energy may be worth. Compare electricity used at home with exported solar power, and plan a monthly or annual solar savings scenario using your own tariff assumptions.
Calculate Your Solar Electricity Savings
Enter your installed solar system capacity, average peak sun hours, performance ratio and utility tariff. The result is an estimate of solar electricity value, not a guaranteed reduction in your bill.
Solar System & Electricity Inputs
Estimated Solar Value
Estimated value over 30 days/month and 12 similar months/year.
Where Your Solar Value Comes From
Estimates assume a flat import price, stated export credit and sufficient demand to consume the self-use portion. Utility rules vary.
Solar Savings Calculator: Formula, Examples and Complete Guide
The Solar Savings Calculator estimates how much electricity a rooftop solar installation may generate and how much that electricity could be worth. It separates energy consumed directly by your property from energy exported to the grid because those two quantities can have different financial values.
How Solar Savings Are Calculated
Net monthly value subtracts any optional recurring fixed solar costs. This simplified model does not estimate installation cost, financing, degradation, battery losses or payback period.
Worked Example: 5 kW Solar System
Assume a 5 kW system receives 4.5 peak sun hours daily, has an 80% performance ratio and produces energy for 30 equivalent days per month.
- Daily generation: 5 × 4.5 × 0.80 = 18 kWh
- Monthly generation: 18 × 30 = 540 kWh
- 70% self-consumed: 378 kWh
- 30% exported: 162 kWh
- Avoided purchases: 378 × $0.20 = $75.60
- Export credits: 162 × $0.05 = $8.10
- Total estimated monthly value: $83.70
- Annualized over 12 identical months: $1,004.40
Real solar production varies by season, location, weather and panel orientation. This is an illustrative calculation, not a site-specific forecast.
What Are Peak Sun Hours?
Peak sun hours represent equivalent hours of sunlight at 1,000 W/m² solar irradiance. They are not the same as daylight hours. Use a reliable solar resource estimate for your location and panel orientation.
What Is a Solar Performance Ratio?
The performance ratio approximates combined losses from temperature, wiring, inverter conversion, dirt, shading and other system factors. The correct assumption depends on system design and local conditions; 80% is an example rather than a universal value.
Self-Consumption Versus Exported Solar Electricity
Self-consumed solar electricity can reduce the amount you buy from the grid. Exported electricity may earn a credit, but some utilities use different compensation methods, banking arrangements or eligibility rules. If exports are not credited, enter zero.
Why Savings May Differ From the Electricity Bill
Actual bills can include fixed charges, minimum bills, demand charges, taxes, tiered rates and time-of-use tariffs. Your savings depend on when your solar system produces electricity relative to your household consumption. This calculator does not determine your utility’s billing treatment.
How to Improve Your Solar Estimate
Use a site-specific irradiance assessment, manufacturer specifications and realistic electricity consumption data. Compare solar output estimates with your hourly or monthly electricity usage and the utility’s current export compensation rules.
Authoritative Solar Resource
The NREL PVWatts Calculator provides location-based photovoltaic energy estimates and is useful for checking the production assumptions used in this Solar Savings Calculator.
More ToolZippy Energy Calculators
Solar Savings Calculator FAQs
How accurate is the Solar Savings Calculator?
It provides a simplified estimate based on your inputs. Site-specific production, household consumption patterns and utility rules can change actual savings.
How much can a 5 kW solar system save?
Savings depend on sunlight, losses, how much solar power you use directly and local electricity rates. Enter those assumptions to estimate the value for your circumstances.
What if my electricity company pays nothing for exports?
Enter zero as the export credit. The calculation will then value only the electricity used on site.
Does the calculator include solar installation cost?
No. It estimates electricity value and optional recurring fixed costs, not equipment purchase cost, financing or return on investment.
Does solar energy generation stay constant all year?
No. Seasonal sunlight, temperature and weather change production. The annualized estimate repeats the entered monthly assumptions and should be treated as illustrative.
Can I calculate solar savings in AED?
Yes. Select AED and enter your local electricity price and export credit in dirhams per kWh. Currency selection does not change or convert tariffs.
Is a battery included in the savings estimate?
No battery model is included. Battery storage can shift solar electricity to later hours but also adds losses and costs.