Total Cost of Ownership
The complete cost of a solar system over its lifetime, including purchase price, financing costs, maintenance, inverter replacement, monitoring fees, and insurance — minus all incentives and energy savings.
Why It Matters
Comparing total cost of ownership across financing options (cash, loan, lease, PPA) reveals the true long-term cost and helps choose the best path.
Related Tools
Related Terms
Cost Per Watt
The standard metric for comparing solar installation prices, calculated by dividing total system cost by its DC wattage. US average is $2.50-$3.50/W before incentives (2024).
Levelized Cost of Energy (LCOE)
The total cost of generating electricity from a system divided by its lifetime energy production. Used to compare energy sources.
Payback Period
The time it takes for your cumulative savings to equal your initial investment in solar. Typically 6-10 years in the US.