If you are looking into installing a solar power system for your house to take control over your energy costs, you need to find out what percentage of offset you will get from your solar panels. Hence, it is important for you to have a clear understanding of the calculations. It is also highly recommended that you consult with an unbiased Energy Advisor who will provide you with valid information and help you make the right decision. Click HERE to speak with a vetted and licensed Energy Advisor.

There are a few terms that you need to be familiar with before we can discuss the correlation between solar panel production and the Electricity Usage Offset.

  • Solar Power System Kilowatt (KW): This term is used for the system size which is usually determined by the number of panels. For instance if there are 20 solar panels and each panel wattage is 300, then the system size is 6,000 Watt, which is equal to 6 KW (every KW is equal to 1,000 Watt).
  • Solar Power System Kilowatt-Hour (KWh) Production: This term is used for the system’s production which is usually determined by the Solar Power System KW and the Annual Sun Hours. Annual Sun Hours vary depending on your geography, elevation, orientation, mounting plane’s tilt and objects around the system that may cause shade. For example, a 6 KW solar power system will generate 10,800 KWh annually if the Annual Sun Hours is equal to 1,800.
  • Annual Sun Hours is the number of hours that the sunlight intensity is strong enough to generate electricity.
  • Kilowatt-Hour (KWh) Consumption: This refers to how much electricity you draw from the utility company. This number is determined by multiplying your Electrical Devices KW by the number of hours they were in use. For example, you will consume 14,600 KWh in a year if you leave 200 light bulbs (each 20 Watt or 0.02 KW) on 10 hours a day for 365 days in a year. Here is the formula: 200 X 0.02KW X 10 Hours per day X 365 Days.

Now we can better understand what usage offset means. If your consumption is 14,600 KWh in one year and your solar power system generates 10,800 KWh, it means you are only drawing 3,800 KWh from the utility company and the rest is generated from your solar panels. This means 10,800 KWh of your usage has been offset by your solar power system. And here is how you can calculate your usage offset percentage: 10,800 KWh Production/14,600 KWh Usage. In this case, that means 73.9% offset.

Renulogix is the solar installer accelerator cloud-based Platform. We help solar companies to increase their lead-volume organically from one side, and we provide them with cloud-based tools from the other side to sell and manage solar projects.