How do I use the sales price PV calculator?

For owners of solar systems it often can be difficult to determine a profitable sales price for your project. The reason for this is the number of variable parameters that go to determine the productivity and subsequent value of a PV installation. In response to this Milk the Sun supply a free calculator tool on their website ( which will produce an approximate sales price for any installation. The tool was developed in co-operation with Solarpraxis and should be used in conjunction with this user guide.

Step 1 – Getting Started

You can find the PV calculator under the ‘PV System Assessment’ tab located on the main start page

 Before the Sales calculator can be used you will need to be logged into your Milk the Sun account, registration is free and if you are not logged in a registration page will pop up at this point.

 Step 2 – The calculator data entry template

This screen is the data template by which you are able to enter the varies parameters that will determine the correct sale price for your installation.

 Length of the Feed in Tariff: This refers to how long the feed in tariff is fixed for; this is usually 20 years in the UK for new projects.

Grid Connection: This refers to the time at which the PV system was connected to the grid.

Electricity Production: This can be presented in watt-hour (Wh). A watt-hour presents how much energy a machine with one watt power can absorb or release. The actual power output is presented in kilowattpeak (kWp).

Installed Power: In this field enter the total installed capacity expressed in kilowatt peak (kWp)

Plant Cost: Here you should enter the net cost of the plant at construction

Feed in Tariff: This field requires the feed in tariff in Euro per kWp. Current feed in tariff rates regarding the location for the project can be found online. If a project is yet to be built then a forecast amount is acceptable.

Self-Consumption: The self-consumption describes what percentage you consume or sell separately from the final income.

Self-Consumption Income:  This field requires the user to enter the revenue per kWh that is either consumed or is sold separate of the post sale revenue

Income after Feed in Tariff: Here you are able to include any income generation that will be present beyond the FIT agreement.

Power loss Per Annum: The power loss per year describes the decline in performance of your PV modules per year, expressed in percent.

Operating costs Per Annum: Operating costs refer to the sum each year for the operation of your PV system. These include the cost of insurance, maintenance and care, monitoring etc.

Rent Per Annum: The rent in this regard relates to a contractual regulated licence of usage for the pv project and for the generated income. The licence of usage is validated by a fee. If you have made a lease prepayment at the beginning, then you are asked at this point to fill in 0 € and add the one-time payment to the new costs. If the lease is an average of the feed-in tariff, please make an average and enter it in this box.

Period of depreciation: Depreciation is calculated over the life of the solar system and includes scheduled or non-scheduled depreciation of the plant.

Expected inflation Per Annum: This describes the percentage of inflation that can be expected per year on average. For the exact annual rate of inflation see

Tax: Please enter the percentage of corporate taxes that you pay for your PV system or your special purpose vehicle (SPV).

Proportion of debt: In this field please enter what percent of the purchase price of the PV system was financed by debt.

Interest Rate: Here enter the interest rate that is set for your debt capital.

Term: What is the term length of your credit agreement?

Loan Grace Period: This refers to the allotted amount of time during which you are not expected to make payments on your credit.

Planned sales date: In this field enter the date of your planned sale of the PV system.

Please note that all figures should be separated by points and not commas. Fields marked with an asterisk are compulsory in order to calculate an effective sales price for your PV system. The more detailed and complete the information provided is, the more accurate the calculation.

 For a list of key terms that are used in the calculator screen see the Glossary Photovoltaic’s.

After filling out the form please then click on the calculate button

 Step 3 – The results

The results of a calculation are presented in two separate tables. The upper table indicates the sales price with a consideration of the costs that have previously been incurred by the PV system, the projected revenue and costs of the system. The table below shows the potential returns that can be achieved from the potential investment.

 The lower table shows, in the left column, the potential return on the equity for a potential investor. This is under the assumption that he will resume the financing and all the parameters remain constant. The right column shows the sale price according to the investor’s return.

The calculator then gives you the option of selling your entered project on Milk the Sun’s platform by pressing the “sell project” button. You will find guidance on how to present you project on our blog, with you project being advertised through our blog and weekly newsletter.

If you require a valuation of your solar system, sales advice or technical due diligence to make your offer more attractive do not hesitate in contacting Milk the Sun who, in association with Solarpraxis, will provide a free quote.  This can be done quickly and easily by pressing the “PV Systems Check” button, an employee from Milk the Sun will contact you and assist in the correct presentation of the project.

The calculator will also allow you to convert your results to PDF by pressing the button “Save as PDF”. Results can be saved and stored in the data space provided; this can be used to provide information for later sale on Milk the Sun.

 For further questions regarding the use of the sales calculator please feel free to contact us directly.

If you are interested in the process of buying a solar system through our platform please visit the “Buy a solar system” article on our blog.

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