5 kW Solar System Savings at $0.18/kWh
Estimate annual savings for a 5 kW solar system with 4.5 peak sun hours at the US average electricity rate of $0.18/kWh.
How to use this tool
- Enter the DC size of the proposed solar system in kilowatts.
- Enter your area's average daily peak sun-hours (3–6 for most of the US).
- Enter your current electricity rate in dollars per kWh.
- Adjust the performance ratio if you have a detailed estimate (default 0.80).
- Enter the net installed cost after credits, then read savings and payback.
A 5 kW solar system at the US average electricity rate of $0.18/kWh is one of the most commonly modeled residential solar scenarios.
Frequently asked questions
- How many peak sun-hours does my area get?
- Most of the continental US averages 4–6 peak sun-hours per day over the year, with the Southwest highest and the Pacific Northwest lowest. Your installer or a solar-resource map (e.g. NREL's PVWatts) can give a local figure.
- Why is the payback 'simple'?
- Simple payback divides cost by first-year savings and ignores rate inflation, panel degradation, and financing. Real payback is usually a bit shorter because electricity prices tend to rise faster than panels degrade.
- Does this include the federal tax credit?
- Only if you enter the net cost after the credit. Enter the installed price minus any tax credits and rebates so the payback reflects what you actually pay out of pocket.