Solar Panel Savings Calculator

Calculate solar panel savings, payback period, and return on investment. Includes federal tax credits, production estimates, and 25-year projections.

Monthly Electric Bill

Electricity Rate

$/kWh

System Size

System Cost (before credits)

Peak Sun Hours/Day

hrs

Tab to move between fields

Net System Cost

$12,600.00

≈ 8 months of rent

Tax Credit Savings$5,400.00

First Year Savings$1,025.00

Monthly Savings$85.00

Payback Period11 years

25-Year Gross Savings$34,941.00

25-Year Net Profit$22,341.00

Annual Production7,884 kWh

Bill Coverage57%

How to Use This Calculator

How the result changes with System Cost (before credits)

Monthly Electric Bill: Your average monthly electricity bill. Check a recent utility statement.
Electricity Rate: Cost per kilowatt-hour from your utility bill. US average is ~$0.13/kWh.
System Size: Average US home: 5-8 kW system.
System Cost (before credits): Average: $2.50-$3.50 per watt installed.
Peak Sun Hours/Day: US average: 4-5 hours. Southwest: 6+. Northeast: 3-4.
Federal Tax Credit: ITC is 30% through 2032.
Electricity Price Inflation: Expected annual increase in electricity costs. Historical average is ~2-3%.
Panel Degradation: Panels lose ~0.5% efficiency per year.

Annual Production = System Size × Sun Hours × 365 × 0.8 (efficiency). Savings = Production × Rate. Payback = Net Cost ÷ Annual Savings.

Identify Input Parameters
4 parameters
Monthly Electric Bill = 150, Electricity Rate = 0.13, System Size = 6, System Cost (before credits) = 18000 = 8 input(s) provided
Calculate Net System Cost
12600 = $12,600
Calculate Tax Credit Savings
Tax Credit Savings
5400 = $5,400
Calculate First Year Savings
First Year Savings
1025 = $1,025