ITC/PTC Calculator

Investment and production tax credit for solar projects.

Total project cost ($)

System capacity (kW DC)

Peak sun hours (PSH)

System derate factor

Prevailing wage met (0/1)

Domestic content bonus (0/1)

Energy community bonus (0/1)

PTC rate ($/kWh)

Federal tax rate

Tab to move between fields

Best credit value ($)

$600,000.00

≈ 14 Teslas

Effective ITC rate (%)30%

ITC credit amount ($)$600,000.00

Annual PTC credit ($)$40,150.00

Total PTC over 10 years ($)$401,500.00

PTC net present value ($)$281,997.00

Recommended (1=ITC, 2=PTC)1

Effective project cost ($)$1,400,000.00

Annual production (kWh)1,460,000

Tax Equity Value$2,857,142.86

How to Use This Calculator

Enter the total project cost and system capacity in kW DC.
Set peak sun hours and system derate factor for annual production estimates.
Toggle prevailing wage (required for full 30% ITC), domestic content bonus, and energy community bonus.
Enter the current PTC rate and federal tax rate.
Review the recommended credit (ITC vs. PTC), credit value, and effective project cost after incentives.

How the result changes with Total project cost ($)

Total project cost ($): Total eligible installed cost of the solar project.
System capacity (kW DC): Installed DC capacity.
Peak sun hours (PSH): Average daily peak sun hours at project site.
System derate factor: Overall DC-to-AC system efficiency.
Prevailing wage met (0/1): 1 = project meets prevailing wage & apprenticeship requirements (5× credit).
Domestic content bonus (0/1): 1 = project qualifies for +10% domestic content bonus.
Energy community bonus (0/1): 1 = project is in an energy community for +10% bonus.
PTC rate ($/kWh): Current PTC base rate (with prevailing wage). ~$0.0275/kWh for 2024.
Federal tax rate: Corporate federal income tax rate for tax equity valuation.

Best credit value ($): Higher of ITC amount or PTC net present value.
Effective ITC rate (%): Combined ITC percentage including bonus adders.
ITC credit amount ($): One-time Investment Tax Credit value.
Annual PTC credit ($): Per-year Production Tax Credit value.
Total PTC over 10 years ($): Undiscounted sum of 10 years of PTC.
PTC net present value ($): NPV of 10-year PTC stream at 7% discount rate.
Recommended (1=ITC, 2=PTC): Which credit type provides more value.
Effective project cost ($): Project cost after applying the recommended credit.
Annual production (kWh): Estimated annual electricity output.

Identify Input Parameters
4 parameters
Total project cost ($) = 2000000, System capacity (kW DC) = 1000, Peak sun hours (PSH) = 5, System derate factor = 0.8 = 9 input(s) provided
Calculate Best credit value
600000 = $600,000
Calculate Effective ITC rate
Effective ITC rate = itcBaseRate + domesticBonus + communityBonus
30 = 30%
Calculate ITC credit amount
ITC credit amount = totalProjectCost * totalItcRate
600000 = $600,000