Solar
Commercial Solar Calculator
Commercial solar production equals array kW multiplied by annual output per kW. The optional depreciation layer remains off until five-year MACRS eligibility is professionally confirmed.
Estimate commercial solar production, first-year energy value, operating value, and an optional user-confirmed MACRS depreciation scenario.
Calculated result
Commercial solar scenario
Calculating…
Calculated locally in your browser
Planning math only. Verify equipment specifications and installation requirements separately.
Data provenance: NLR PVWatts v8 grid awaiting its first private-key refresh; the visible peak-sun-hours fallback is active. EIA residential state averages updated 2026-08-13. ZIP centroids use the 2025 Census Gazetteer. No ZIP or calculator input is sent to those sources. Read the solar data provenance and limitations.
Tax configuration verified 2026-08-13: Certain qualified clean-energy facilities, property, and storage may be eligible for five-year MACRS. Eligibility depends on the property and current law; the calculator defaults eligibility off. Review the IRS cost-recovery guidance and IRS Publication 946, then obtain project-specific tax advice.
What this calculator returns
Layer A production and energy value remain separate from the optional depreciation scenario. Confirm property classification, basis, placed-in-service date, bonus treatment, tax rate, and credit interactions professionally.
Formula and variables
The calculation runs entirely in your browser. Static formulas, definitions, examples, and tables remain readable without JavaScript.
Annual production = system kW × annual kWh/kW. First-year operating value = production × rate − maintenance. If eligibility is confirmed, first-year MACRS uses 20% of basis remaining after the entered bonus deduction.
- Parray
- Commercial array nameplate power in kilowatts DC.
- Y
- Entered annual electrical production per installed kilowatt.
- B
- Entered depreciable basis before any professionally confirmed adjustment.
- b
- User-confirmed bonus-depreciation percentage; zero by default.
- m1
- First-year 20% rate from the five-year half-year MACRS schedule.
The five-year half-year MACRS schedule is 20%, 32%, 19.2%, 11.52%, 11.52%, and 5.76%. Eligibility and bonus percentage default off or zero.
Worked example
| Input | Value |
|---|---|
| Commercial array size | 100 kW DC |
| Annual production per kW | 1400 kWh/kW |
| Installed cost | 200000 $ |
| Blended electricity rate | 0.15 $/kWh |
A 100 kW array at 1,400 kWh/kW produces 140,000 kWh/year. At $0.15/kWh less $3,000 maintenance, first-year operating value is $18,000 before financing and tax effects.
Reference table
| Recovery year | Regular MACRS percentage | Calculator treatment |
|---|---|---|
| 1 | 20% | Applied after any entered bonus deduction |
| 2 | 32% | Reference only; first-year result shown above |
| 3 | 19.2% | Reference only; first-year result shown above |
| 4 | 11.52% | Reference only; first-year result shown above |
| 5 | 11.52% | Reference only; first-year result shown above |
| 6 | 5.76% | Reference only; first-year result shown above |
Frequently asked questions
How is first-year operating value calculated?
It multiplies modeled annual production by the entered energy rate and subtracts entered annual maintenance.
Why is the depreciation scenario off by default?
Property classification, basis, placed-in-service timing, and current-law eligibility require project-specific confirmation.
Is every commercial solar project five-year MACRS property?
No. Current IRS material describes qualifying clean-energy property, while eligibility depends on the specific property and law. The calculator leaves the tax scenario off until confirmed.
Assumptions and limitations
- Not financial, tax, legal, accounting, or investment advice.
- No demand-charge, interval-load, export, financing, credit, basis-reduction, or depreciation-eligibility determination.
- Five-year MACRS eligibility varies by property and current law; the default is not confirmed.
- IRS policy configuration verified 2026-08-13.
Method and sources
Review the solar data sources, calculation methodology, and electrical formulas for the references most relevant to this calculation. The broader technical sources index records source scope and verification. Last reviewed .