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Electricity Production Costs


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From previous questions I understand that all financials is considered on the Electricity Production Costs over the period of the model. I have a picked up that this is calculated from the PV generator potential kWh and not the actual direct own use of solar power. 


When considering actual load profiles and throttling at feed In point the financial on the LCOE / productuin cost is not correct 

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  • 2 weeks later...

Hi SolarEPC,

this is correct, for on-grid systems we calculate the electricity production costs using the total PV energy yield, not taking into account the maximum feed-in power clipping at the feed-in point or own consumption. Concerning the own consumption I'd guess that this is correct, since you can use the rest of the PV energy for other purposes like feed-in. Concerning the clipping at the feed-in point, I'd say you are right, since the clipped energy is really "wasted" and can't be used elsewhere. I'll discuss that with my colleagues and put it on our list.

Thanks for the feedback, kind regards,


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Hi Moses,

thanks for your questions.

On 3/16/2024 at 10:08 AM, Moses said:

How does PVSOL account for the  unit cost of solar production in calculating the electricity savings?

Does this article help to answer your first question?


On 3/16/2024 at 10:08 AM, Moses said:

How does it determine the annual energy cost before and after installation of PV?

Basically, the annual energy costs after installation are the annual energy costs before the PV installation minus the savings from self-production. In addition, the inflation rate for the energy price and the degradation of the modules are taken into account. The latter two factors cause the costs to change accordingly over the term.

The energy costs before installation are the consumption before installation multiplied by the purchase price. The energy costs after installation are the consumption after installation multiplied by the purchase price. The difference between the two results in the savings due to the installation of the PV system.

E. g. in the example project 'Battery System' the consumption after installation is 1500 kWh:


Kind regards



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