Note: This calculator provides estimated results for industrial facilities. Actual ROI may vary based on multiple factors. Always consult with a solar professional before making investment decisions.
Results
Total Installation Cost:
$0
After-Incentive Cost:
$0
Annual Energy Production:
0 kWh
Annual Savings (Year 1):
$0
Payback Period:
0 years
Return on Investment (ROI):
0%
Net Present Value (NPV):
$0
Levelized Cost of Energy (LCOE):
$0/kWh
25-Year Savings:
$0
CO2 Emissions Avoided (25 Years):
0 metric tons
Cash Flow Projection
Cumulative Savings Projection
Benefits of Industrial Solar Power
- Energy Independence: Reduce reliance on utility companies and grid disruptions.
- Cost Savings: Significantly lower operating expenses over time.
- Tax Benefits: Take advantage of federal and local tax incentives.
- Predictable Costs: Protection against volatile energy prices.
- Corporate ESG Goals: Meet sustainability targets and reduce carbon footprint.
- Marketing Advantage: Enhance brand value with green practices.
- Property Value: Increase facility asset value.
- Long-Term Investment: 25+ years of system life with high reliability.
How It Works: Calculation Details
This calculator estimates the financial returns of investing in a solar power system for industrial facilities using the following key parameters:
| Parameter | Description | Impact on Calculations |
|---|---|---|
| Facility Size | Total square footage of the industrial facility. | Used to verify if the proposed solar system size is reasonable for the facility. |
| Electricity Consumption | Annual electricity usage in kilowatt-hours (kWh). | Determines current electricity costs and potential offset from solar production. |
| Current Electricity Rate | Price paid per kWh from the utility. | Directly impacts the value of electricity produced by solar and annual savings. |
| Annual Price Increase | Expected annual increase in utility electricity prices. | Affects future savings calculations and ROI projections. |
| Solar System Size | Capacity of the proposed solar installation in kilowatts (kW). | Determines energy production capacity and installation cost. |
| Installation Cost | Cost per kW to install the solar system. | Major factor in determining initial investment and payback period. |
| Location Efficiency | Factor based on geographic location and solar irradiance. | Adjusts energy production estimates based on local solar potential. |
| Tax Incentives | Available tax credits, rebates, and incentives (percentage). | Reduces effective system cost, improving ROI and shortening payback period. |
| O&M Costs | Annual costs for operation and maintenance. | Affects annual net savings and long-term financial performance. |
| Analysis Period | Timeframe for financial analysis, typically 25 years (solar panel warranty period). | Defines the scope of long-term calculations and cumulative savings. |
| Discount Rate | Rate used to calculate present value of future cash flows. | Influences NPV calculations, accounting for time value of money. |
Key Calculations:
- Annual Energy Production = System Size (kW) × 1,400 kWh/kW (base production factor) × Location Efficiency Factor
- Annual Savings = Annual Energy Production × Electricity Rate (adjusted for yearly increases)
- Payback Period = After-Incentive Cost ÷ Annual Savings (adjusted for yearly electricity price increases)
- ROI = (Cumulative Savings - Initial Investment) ÷ Initial Investment × 100%
- NPV = Present value of all future cash flows minus initial investment
- LCOE = Total lifetime cost of the system ÷ Total lifetime energy production
- CO2 Avoided = Annual Energy Production × 0.000707 metric tons CO2/kWh × Analysis Period
Assumptions:
- System degradation: 0.5% per year (industry standard for quality panels)
- Grid electricity carbon intensity: 0.000707 metric tons CO2 per kWh (US average, 2025)
- System lifetime: 25+ years with manufacturer warranties
- Net metering or similar compensation for excess production is available