Solar ROI Calculator

Will solar panels pay for themselves?

Will solar panels pay for themselves?

System Cost ($)

Incentives/Rebates ($)

Annual Production (kWh)

Electricity Rate ($/kWh)

Annual Rate Increase (%)

System Lifespan (years)

Annual Maintenance ($)

Formula

ROI = (Total Savings - Net Cost) / Net Cost × 100

How to Use

1
Enter system cost — Input the total cost of your solar system after incentives.
2
Enter electricity cost — Input your current electricity rate ($/kWh from your bill).
3
Set production estimate — Enter estimated annual kWh production from your solar installer.
4
View ROI analysis — See payback period, 25-year savings, and annual return on investment.

5-10 years is considered a good payback period. With the 30% federal tax credit, many systems pay back in 6-8 years.

Savings vary widely but a typical 6kW system saves $100-$150/month. Actual savings depend on electricity rates and sun exposure.

Yes, studies show solar panels increase home value by approximately $15,000-$25,000 on average. Buyers pay a premium for lower energy bills.

The federal Investment Tax Credit (ITC) allows you to deduct 30% of solar system costs from federal taxes. This significantly improves ROI.

Maximize production with optimal angle.

Estimate solar hours at your location.

Size your inverter correctly.