Solar Storage ROI Calculator

Plan solar storage budgets for construction sites. Adjust rates, degradation, and replacement to match reality. Download results, share assumptions, and decide with confidence now.

Calculator Inputs

Enter your assumptions, then calculate ROI metrics.
DC system size used for annual production.
Typical range 1200–1900 depending on site.
Nameplate capacity before usable limits.
Equipment + labor per kW.
Battery + inverter integration per kWh.
Permitting, design, mobilization, inspections, etc.
Applied as upfront cost reduction.
Retail avoided cost for self-consumed energy.
Credit for exported energy, if available.
Portion used on-site without battery shifting.
Increased on-site usage after shifting and smoothing.
Energy delivered / energy charged.
Usable fraction of nameplate capacity per cycle.
Average cycles used for shifting per day.
If demand charges apply, battery can reduce peaks.
Optional monetized resiliency value for outages.
Used for total cashflow horizon.
Annual reduction in output over time.
Rate growth applied to energy value and O&M.
Used to compute NPV and discounted cashflow.
Annual maintenance, monitoring, minor repairs.
Extra annual allowance as percentage of total capex.
Set 0 to disable replacement cost.
Applied in the replacement year (undiscounted).
Formula Used How to Use

Example Data Table

Sample values for a mid-size site with daytime loads and occasional peaks.
Item Example value Notes
Solar size50 kWContainerized or rooftop array sizing.
Annual yield1500 kWh/kW-yrAdjust for site solar resource and shading.
Storage capacity100 kWhSupports shifting and peak reduction.
Retail rate$0.18/kWhHigher rates improve payback.
Self-consumption (no / with)55% / 80%Battery increases on-site usage.
ReplacementYear 12 at 55%Reflects midlife battery refresh cost.
Tip: Use your utility bills to calibrate rates and demand savings.

Formula Used

  • Annual PV energy (Year 1): PV_kWh = Solar_kW × Yield
  • Usable battery energy per cycle: E_usable = Storage_kWh × DoD
  • Annual battery throughput: Throughput = E_usable × Cycles/day × 365 × Efficiency
  • Self-consumed energy: Self_kWh = PV_kWh × SelfConsumption%
  • Exported energy: Export_kWh = PV_kWh − Self_kWh
  • Energy value: Value = Self_kWh×RetailRate + Export_kWh×ExportRate
  • Degradation: PV_kWh(y) = PV_kWh(1) × (1 − Deg)^(y−1)
  • Escalation: Rates(y) = Rates(1) × (1 + Esc)^(y−1)
  • Yearly net cashflow: Net(y) = Value(y) + Demand(y) + Backup(y) − O&M(y) − Replacement(y)
  • Upfront net cost: Upfront = SolarCapex + StorageCapex + SoftCosts − Incentives
  • NPV: NPV = −Upfront + Σ Net(y)/(1+Discount)^y
  • Simple ROI: ROI = (Σ Net(y) − Upfront) / Upfront

How to Use This Calculator

  1. Enter solar size, expected yield, and battery capacity.
  2. Fill in installed costs and any incentives or rebates.
  3. Set electricity and export rates from your tariff.
  4. Choose realistic self-consumption values before and after storage.
  5. Add demand savings or backup value if you can monetize them.
  6. Review project life, degradation, escalation, and discount rate.
  7. Click Calculate ROI to view results above the form.
  8. Use CSV or PDF to share assumptions with stakeholders.

Cost Drivers for Solar and Storage

Installed cost is usually driven by solar equipment ($/kW), storage hardware ($/kWh), and site soft costs such as transport, foundations, permits, and commissioning. Enter incentives as a direct reduction to net capex to mirror rebates or tax credits captured by the project. For short-duration jobsites, set a conservative project life so you do not spread benefits across years the system will not operate.

Energy Value and Self-Consumption

Annual value is built from two streams: self-consumed energy valued at the retail rate and exported energy valued at the export rate. The self-consumption percentages represent how well site loads match solar output before and after shifting with storage. If daytime loads are high, 50–65% is common without storage; with storage, 70–90% can be achievable when evening lighting and equipment charging are scheduled.

Battery Throughput Limits

Storage benefits are capped by battery throughput. The calculator estimates annual throughput from usable capacity (kWh × depth of discharge), cycles per day, and round-trip efficiency. When the added self-consumed energy exceeds this throughput, savings are limited even if you enter a higher target self-consumption percentage. Use realistic cycling: 0.5–1.0 cycles/day fits many sites, while >1.5 requires deliberate operational control.

Lifecycle Effects and Replacement

Performance changes over time matter. Degradation reduces yearly production, while electricity escalation increases the value of avoided grid energy and may also raise operating expenses. The replacement year and replacement percent represent a midlife battery refresh, creating a visible dip in annual cashflow. Align this entry with warranty terms and expected cycle intensity, and include procurement lead time for critical components.

Decision Metrics for Stakeholders

Use multiple metrics to decide. Simple payback shows how quickly annual net savings recover the upfront net cost. Simple ROI compares lifetime net savings to upfront investment, supporting quick screening. NPV discounts each year’s net cashflow by your discount rate to match capital budgeting rules. IRR estimates the annualized return where NPV equals zero, helping compare against alternative equipment purchases. Review the yearly cashflow table to confirm replacement costs do not coincide with peak expenditure months onsite.

FAQs

What does self-consumption mean here?

It is the share of solar energy used on-site instead of exported. Storage raises self-consumption by shifting excess daytime energy to evening or peak periods.

How should I choose the annual yield value?

Use a site-specific estimate from production tools or past projects. Typical construction deployments range from 1,200 to 1,900 kWh per kW per year depending on location and shading.

Why can savings be capped even with a high storage percentage?

Because the battery can only move a limited amount of energy each year. Throughput depends on usable capacity, cycles per day, and round-trip efficiency, so unrealistic cycling will overstate savings.

Where do demand savings fit in?

If your tariff includes demand charges, enter the expected monthly reduction from peak shaving. For flat energy-only tariffs, leave demand savings at zero.

What should I enter for battery replacement?

Set the year when a major refresh is expected and the replacement cost as a percent of storage capex. Use warranty duration, cycle intensity, and vendor pricing trends to guide the assumption.

How can I model generator fuel offsets or outage benefits?

Add the avoided fuel and maintenance value into backup value per year, or reflect it in the electricity rate for displaced kWh. Keep assumptions documented so stakeholders can validate them.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.