Solar Monetization Calculator

The Solar Monetization Calculator helps you determine whether Bitcoin mining is a better use of your solar energy than selling it back to the grid. By comparing mining revenue against net metering compensation, you can make an informed decision about how to maximize the value of your solar production.

Open the Calculator

Quick Start

1. Choose your input mode - Select how you want to provide solar production data
2. Enter your solar details - ZIP code and system size, or your own production numbers
3. Select a miner - Pick from presets or enter custom efficiency
4. Compare against net metering - See how mining stacks up against your utility’s compensation
5. Review your results - See annual revenue, per-kWh earnings, and recommendations

The calculator uses live Bitcoin network data and updates results in real-time as you adjust inputs.

Understanding Input Modes

The calculator offers three ways to model your solar production:

Mode 1: Estimate (Location-Based)

Use this mode if you’re planning a new solar installation or want a quick estimate.

The calculator uses the NREL PVWatts API to estimate annual solar production based on:

• Local solar irradiance (kWh/m²/day)
• Typical system losses (14% default)
• Fixed south-facing tilt (latitude-optimal)

Example: A 10 kW system in Phoenix, AZ might produce ~18,000 kWh/year, while the same system in Seattle, WA might produce ~12,000 kWh/year.

Mode 2: Production (User-Provided Generation)

Use this mode if you know your actual or expected solar production.

When to use this mode:

• You have an existing system with historical data
• You have a quote with production estimates
• You want to model a specific scenario

Mode 3: Excess (Net Metering Comparison)

Use this mode to specifically compare mining your excess solar against net metering.

This mode is ideal if you already offset your own usage and want to optimize what happens to the surplus.

Net Metering Comparison

Understanding Utility Compensation Types

Utilities compensate exported solar differently. The calculator models three common structures:

Bill Credits (Full Retail Rate)

How it works:

• Each kWh exported earns a credit equal to your retail electricity rate
• Credits offset future electricity purchases
• Unused credits typically expire after 12 months

Typical rate: ~$0.12/kWh (varies by location)

Where it’s common: California (legacy NEM 2.0), many Northeast states, Colorado

Pros: Highest compensation rate Cons: Credits can expire; no cash value

Net Billing (Avoided Cost Rate)

How it works:

• Each kWh exported is credited at a lower “avoided cost” or wholesale rate
• Credits are applied instantly to your bill
• Typically 30-50% of retail rate

Typical rate: ~$0.05/kWh (varies widely)

Where it’s common: California NEM 3.0, Arizona, Idaho, Nevada

Pros: Credits don’t expire Cons: Much lower compensation than retail

Annual Cash-Out

How it works:

• kWh credits accumulate throughout the year
• Annual excess is paid out at a low wholesale rate
• Monthly credits may be at higher rate

Typical rate: ~$0.02-0.04/kWh for annual payout

Where it’s common: Xcel Energy territories, TVA utilities, some rural co-ops

Pros: Receive actual cash for excess Cons: Very low compensation rate

Comparison Table

Understanding the Calculations

Core Mining Formula (kWh-Based)

The key insight: Only miner efficiency matters for solar mining economics—not power draw or hashrate individually.

Sats per kWh = (1000 / Efficiency_J_TH) × (Hashvalue / 24)

Where:

• 1000 converts kWh to Wh
• Efficiency_J_TH is miner efficiency in Joules per Terahash
• Hashvalue is sats earned per TH per day
• 24 converts daily hashvalue to hourly

Why this works:

A miner’s hashrate is directly proportional to its power consumption:

Hashrate (TH/s) = Power (W) / Efficiency (J/TH)

So for any amount of energy (kWh), the BTC earned depends only on efficiency:

Total Sats = kWh × 1000 × (1 / Efficiency) × (Hashvalue / 24)

Example:

• Miner efficiency: 20 J/TH
• Hashvalue: 60 sats/TH/day
• Solar production: 1 kWh

Sats = 1 × 1000 × (1/20) × (60/24)
     = 1000 × 0.05 × 2.5
     = 125 sats per kWh

Daily/Monthly/Annual Revenue

Daily BTC = Daily kWh × Sats per kWh / 100,000,000

Monthly BTC = Monthly kWh × Sats per kWh / 100,000,000

Annual BTC = Annual kWh × Sats per kWh / 100,000,000

USD Value = BTC × BTC Price

Revenue per kWh

$/kWh (mining) = Sats per kWh × BTC Price / 100,000,000

Example: At 125 sats/kWh and $100,000 BTC:

$/kWh = 125 × 100,000 / 100,000,000 = $0.125/kWh

Net Metering vs Mining Comparison

Mining Advantage = Mining $/kWh - Net Metering $/kWh

Recommendation:
- If Mining $/kWh > Net Metering $/kWh → "Mine your excess solar"
- If Mining $/kWh < Net Metering $/kWh → "Keep net metering"
- If close (within 20%) → "Consider mining for BTC accumulation"

Bitcoin Network Data & Overrides

Live Data Sources

The Three-Knob Override System

For “what-if” scenario analysis, you can override live data using three independent controls:

Knob 1 - Price Group:

• Edit BTC Price and hashprice auto-calculates, OR
• Edit Hashprice and BTC price auto-calculates

Knob 2 - Network Group:

• Fee % anchors this group
• Edit Network Hashrate and hashvalue recalculates, OR
• Edit Hashvalue and network hashrate recalculates

Knob 3 - Fee Percentage:

• Slider from 0-99%
• Models transaction fee environments
• When adjusted, hashvalue recalculates (network hashrate held constant)

Click “Reset to live data” to clear overrides.

Understanding the Results

Primary Metrics

Comparison Metrics (Excess Mode)

Monthly Breakdown

The calculator shows month-by-month projections:

• Solar production (kWh)
• BTC earned
• USD value
• Comparison to net metering

This helps visualize seasonal variations—summer months typically produce more solar and thus more mining revenue.

Miner Selection

For solar mining, efficiency (J/TH) is the only spec that matters. The calculator includes presets:

Custom input: Enter any J/TH efficiency value directly.

Note: Lower J/TH = more efficient = more sats per kWh. A 20 J/TH miner earns ~5x more per kWh than a 100 J/TH miner.

Use Cases & Examples

Example 1: Should I Mine My Excess Solar?

Scenario: You have a 10 kW system producing 14,000 kWh/year. After self-consumption, 5,000 kWh goes back to the grid. Your utility offers net billing at $0.045/kWh.

Steps:

1. Select “Excess” input mode
2. Enter 5,000 kWh excess
3. Select “Net Billing” at $0.045/kWh
4. Choose a miner (e.g., Avalon Mini 3 at 21.3 J/TH)
5. Review comparison

Possible result:

• Net metering value: 5,000 × $0.045 = $225/year
• Mining revenue: ~$400/year (at current network conditions)
• Recommendation: Mine your excess solar

Example 2: New Solar Installation Planning

Scenario: You’re installing a 12 kW system and want to know if you should oversize for mining.

Steps:

1. Select “Estimate” mode
2. Enter your ZIP code
3. Enter 12 kW system size
4. Compare mining revenue to net metering options
5. Model larger systems (15 kW, 20 kW) to see diminishing returns

Example 3: What BTC Price Makes Mining Beat Net Metering?

Scenario: Your utility offers generous $0.10/kWh bill credits. At what BTC price does mining become better?

Steps:

1. Enter your solar production
2. Set net metering to $0.10/kWh
3. Use Knob 1 to adjust BTC price
4. Find the price where Mining $/kWh exceeds $0.10

Key Relationships & Sensitivity

What Drives Solar Mining Economics?

In order of impact:

1. Miner efficiency (J/TH) — The single most important variable. Upgrading from 100 J/TH to 20 J/TH increases revenue 5x.

2. Bitcoin price — Directly scales USD revenue. When BTC doubles, dollar revenue doubles.

3. Net metering rate — The lower your utility pays, the more attractive mining becomes.

4. Network hashrate — Inversely affects earnings. Higher network hashrate = less BTC per TH.

5. Fee % — Higher transaction fees increase miner revenue (when network is congested).

Important Considerations

Net metering is risk-free: Net metering compensation is guaranteed (at current rates). Mining revenue varies with BTC price and network conditions.

Mining accumulates BTC: Even if current USD value is similar, mining lets you accumulate Bitcoin—potentially valuable if price appreciates.

Utility rate changes: Net metering policies are changing rapidly. Many utilities are reducing compensation (NEM 3.0 trend). Mining provides optionality.

Miner efficiency improvements: New miner generations improve efficiency ~20-30% every 1-2 years. Future miners will earn more per kWh.

Technical Notes

Data Sources

PVWatts API Parameters

When using Estimate mode, the calculator queries NREL PVWatts with:

• System capacity: User-provided kW
• Module type: Standard (crystalline silicon)
• Array type: Fixed (roof mount)
• Tilt: Location latitude
• Azimuth: 180° (south-facing)
• System losses: 14%

Fallback Values

If APIs are unavailable:

Glossary