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SolarPowerGenius

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.

Basic Information
$

Your average monthly electricity bill amount

Select your state for accurate rates and incentives

Advanced Options
$

Your electricity rate per kilowatt-hour

Average daily sunlight hours in your area

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:

  1. Get multiple quotes: Compare at least 3 installers
  2. Check your roof: South-facing roofs with minimal shading work best
  3. Review financing: Cash, loan, or lease options each have pros and cons
  4. Understand warranties: Look for 25-year panel warranties and 10+ year inverter warranties

Frequently Asked Questions

How accurate is this solar calculator?
Our calculator provides estimates based on average data for your state, including typical installation costs, electricity rates, and solar irradiance. Actual results can vary by 15-25% depending on your specific roof conditions, shading, electricity usage patterns, and local installer pricing. Always get quotes from multiple installers for the most accurate costs.
The payback time includes your total system cost (panels, inverter, installation) minus all incentives (federal tax credit, state rebates, local incentives), divided by your annual electricity savings. We factor in system degradation of 0.5% per year and assume electricity rates increase 2-3% annually.
Yes, our calculator includes the 30% federal tax credit plus average state and local incentives for your area. However, incentive amounts can change frequently and vary by installer, utility, and specific location. Check with local installers for the most current incentive information.
Solar installation costs vary by state but typically range from £2.50 to £4.50 per watt installed. This includes panels, inverters, racking, permits, and installation labour. Larger systems generally cost less per watt, and prices continue to decline as the technology improves.
The biggest factors affecting your solar savings are: 1) Your electricity rate (higher rates = more savings), 2) Available sunshine in your area, 3) Your roof's orientation and shading, 4) Local incentives and net metering policies, and 5) Your electricity usage patterns throughout the day.
Battery storage makes sense if you experience frequent power outages, have time-of-use electricity rates, or want energy independence. However, batteries significantly increase upfront costs and may not improve your payback time in areas with good net metering policies. Consider your specific needs and local utility policies.

Ready to get accurate quotes?

While our calculator gives you a good starting point, the best way to get accurate solar costs and savings is to get quotes from multiple local installers. They can assess your specific roof conditions, usage patterns, and local incentive availability.

Popular state guides