The calculator uses several key financial metrics to assess the viability of a solar investment. These are based on the estimated system cost and the projected savings from the Tariff A model.
9.1 System Cost Estimation
The estimated cost of the system is derived from a financial model based on local market data. The application uses two methods:
- Interpolation: For the "Starter (33%)" and "Mid-Range (66%)" packages in Quick Mode, the cost is interpolated from a data table that maps monthly savings targets to system costs.
- Linear Formula: For the "Full Offset (100%)" package and for all systems in Engineer Mode, the cost is calculated using a linear formula:
Cost = (B$844.94 × System Size in kWp) + B$2,210.50
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9.2 Payback Period
This is the time required for the cumulative financial savings to equal the initial investment. It provides a simple measure of how quickly the system pays for itself. The formula is:
Payback Period (Years) = Estimated System Cost / Estimated Annual Savings
9.3 Net Profit (20-year)
This metric estimates the total profit generated over a 20-year operational lifetime, after the initial cost has been recovered. Crucially, this calculation includes an annual panel degradation rate of 0.5%. The logic is as follows:
- The savings for each year are calculated, with each subsequent year's savings being 0.5% less than the previous year's due to panel degradation.
- These 20 years of "degraded" savings are summed together to get the total lifetime savings.
- The initial system cost is subtracted from the total lifetime savings to determine the net profit.
9.4 "Is Solar Worth It?" Verdict
The summary verdict shown in Quick Mode provides an at-a-glance assessment based on the payback period of a system that would fully offset your electricity bill (a 100% offset system). The thresholds are:
- Excellent Investment! - Payback period is 10 years or less.
- Good Investment. - Payback period is between 10 and 15 years.
- A Long-Term Consideration. - Payback period is more than 15 years.