How the calculation works
- On-site kWh = the smaller of annual household use and generation × self-consumption percentage ÷ 100.
- Exported kWh = generation − on-site kWh.
- Gross energy value = on-site kWh × avoided import value + exported kWh × export-credit value.
- Net annual value = gross energy value − operating allowance.
- Net capital = installed cost − separately confirmed non-repayable incentive.
- Simple recovery = net capital ÷ positive annual net value.
What the result assumes
- Starting costs, rates and on-site-use fraction are hypothetical. Replace them with your evidence.
- Repayable financing is not an incentive. Include only a separately confirmed non-repayable amount.
- This first-year cash-purchase model excludes financing, discounting, degradation, replacements, escalation and tax treatment. Remaining fixed utility charges are not erased.
- On-site use is a share of generated energy and is capped by annual demand; this annual simplification does not establish hourly feasibility.
- Simple recovery is a comparison at these inputs, not a guaranteed break-even date or an investment recommendation.
Check before using the result
- A separately confirmed incentive cannot exceed the quoted installed cost. Repayable financing is not an incentive.
- Zero or negative annual net value does not produce a simple capital-recovery estimate.
- On-site use is capped by annual household demand; yearly totals cannot establish hourly self-consumption.
Send the complete scenario into the solar quote request; retain assumptions in the editable brief.
Sources + further reading
- Alberta Utilities Consumer Advocate: Micro-generation
- Natural Resources Canada: Closed Canada Greener Homes Grant
- Natural Resources Canada: Closed Canada Greener Homes Loan
- City of Calgary: Residential Clean Energy Improvement Program
Source review: 2026-10-04. Requirements and programs can change; confirm the current details with the authority or provider.