Solar Payback Calculator
Find out how much you can save with solar panels. Get instant calculations for payback time, annual savings, and 25-year return on investment.
Estimates Only
This calculator provides rough estimates. Actual savings depend on your roof, shading, electricity usage patterns, and local installer pricing. Always get quotes from multiple installers for accurate costs.
Solar Payback Calculator
Calculate your potential solar savings, system size, and payback period. Get instant estimates based on your location and energy usage.
How the calculator works
Our calculator uses average data for your state including:
- Solar irradiance: Average sunshine hours per day
- Electricity rates: Current residential rates
- Installation costs: Average cost per watt installed
- Incentives: Federal tax credit (30%) plus state/local incentives
- System degradation: 0.5% annual efficiency loss
Understanding your results
Payback time
The number of years it takes for your electricity savings to equal your initial investment. Most systems pay for themselves in 6-10 years.
Annual savings
How much you'll save on electricity bills each year after your system is paid off. This assumes electricity rates increase 2-3% annually.
25-year savings
Total estimated savings over the system's lifetime. Solar panels typically come with 25-year warranties and can last 30+ years.
Next steps
Ready to explore solar for your home? Here's what we recommend:
- Get multiple quotes: Compare at least 3 installers
- Check your roof: South-facing roofs with minimal shading work best
- Review financing: Cash, loan, or lease options each have pros and cons
- Understand warranties: Look for 25-year panel warranties and 10+ year inverter warranties