How it works
Compare a simple first-year payback with a discounted cash-flow model that explicitly includes replacement and declining generation.
This is the Canada planning view, with monetary inputs and outputs in CAD. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
10-
?projectCost=Installed project priceMoney · Required · Default: 18,000
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?confirmedIncentive=Confirmed eligible incentiveMoney · Required · Default: 0
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?annualBenefit=First-year gross bill and export benefitMoney · Required · Default: 1,800
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?maintenance=Annual maintenanceMoney · Required · Default: 100
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?years=Planning horizon, yearsNumber · Required · Default: 25
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?discountRate=Annual discount ratePercentage · Required · Default: 4
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?degradation=Annual output degradationPercentage · Required · Default: 0.5
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?energyEscalation=Annual energy-price escalationPercentage · Required · Default: 2
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?replacementYear=Replacement year (0 means none)Number · Required · Default: 0
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?replacementCost=Replacement costMoney · Required · Default: 0
Outputs
6-
capitalNet capital costCurrency · Currency: CAD
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annualSavingFirst-year net savingCurrency · Currency: CAD
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paybackSimple payback, yearsNumber · Primary output
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npvDiscounted net valueCurrency · Currency: CAD
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breakevenCash-flow break-even yearNumber
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cumulativeUndiscounted lifetime net benefitCurrency · Currency: CAD
Formula
simple payback = (project price − confirmed incentive) ÷ (first-year benefit − annual maintenance).
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Installed project price: Enter the quantity described by the label.
- Confirmed eligible incentive: Enter the quantity described by the label.
- First-year gross bill and export benefit: Enter the quantity described by the label.
- Annual maintenance: Enter the quantity described by the label.
- Planning horizon, years: Enter the quantity described by the label.
- Annual discount rate: Enter the quantity described by the label.
- Annual output degradation: Enter the quantity described by the label.
- Annual energy-price escalation: Enter the quantity described by the label.
- Replacement year (0 means none): Enter the quantity described by the label.
- Replacement cost: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Installed project price | 18,000 |
| Confirmed eligible incentive | 0 |
| First-year gross bill and export benefit | 1,800 |
| Annual maintenance | 100 |
| Planning horizon, years | 25 |
| Annual discount rate | 4 |
| Annual output degradation | 0.5 |
| Annual energy-price escalation | 2 |
| Replacement year (0 means none) | 0 |
| Replacement cost | 0 |
| Output | Calculated result |
|---|---|
| Net capital cost | CAD 18,000 |
| First-year net saving | CAD 1,700 |
| Simple payback, years | 10.5882 |
| Discounted net value | CAD 13,215.3625 |
| Cash-flow break-even year | 9.8691 |
| Undiscounted lifetime net benefit | CAD 33,545.401 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Solar yield, export compensation and self-consumption are explicit assumptions, not a site survey or utility eligibility determination.
- Incentives must be confirmed for the installation date. No automatic US residential federal solar credit is applied to a 2026 installation.
- A positive simple payback is not a financing offer; degradation, replacement and discounting appear separately in the cash-flow table.
Frequently asked questions
What does this Solar Payback result represent?
Compare a simple first-year payback with a discounted cash-flow model that explicitly includes replacement and declining generation. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified Canada prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is CAD; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Check the input units, supplier or authority evidence, the stated model exclusions and the period used for costs. This arithmetic does not supply missing site-specific design or local legal rules.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- DOE energy-use arithmetic — retrieved 2026-09-24. Energy consumption versus power; not a local tariff or an approval of this implementation.
- PVWatts: site-specific solar estimation — retrieved 2026-09-24. External site-yield model. AskCalculators uses your entered yield; it does not call or reproduce PVWatts.
- DOE insulation overview — retrieved 2026-09-24. Insulation and thermal resistance concepts; not structural or code approval.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.