Solar Net Present Value (NPV) Online Calculator

by Ian McEvoy | Oct 18, 2020

NPV Calculator Formula

The Solar NPV calculator is based on the formula:

Formula for the net present value (NPV) of a solar energy system.

NPV =

-C_Ins
-C_Rep over ( 1 + i ) ^ 15

+ sum from{t = 0} to{p -1} G_1 times(( P_S X S) + (P_E times (1 - S)))X (1 + i_e)^t X( 1 - d )^t / ( 1 - i )^t — Solar Net Present Value (NPV) Online Calculator 2

Where:

NPV = Net Present Value
C_Ins = Installation Cost
C_Rep = Cost to replace the inverter at year 15
i = Future value discount rate
p = lifespan of the solar panel system
G₁ = Electricity price in year 1
P_S = Price of electricity for self consumption
S = Self-consumption factor
P_E = Price of electricity for export
i_e = Electricity price inflation
d = Solar panel degradation (annual, compounded)

See solar NPV spreadsheets to learounded)

See solar NPV spreadsheets to learn more about solar panel NPV calculations.

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Ian McEvoy

Author @ Energy Hero

Ian McEvoy, with a vision of helping homeowners & businesses is dedicated to make renewable energy accessible for all. With a passion to embrace energy efficiency & sustainability, Ian leads Energy Hero’s mission to reduce energy costs & carbon footprints in Ireland.