Solar

Solar Panel Payback Calculator

Solar pays off only after it has saved you more than it cost to install. This calculator estimates your annual electricity savings, your payback period (years to break even) and your total savings over a 25-year panel lifetime.

Your details

Results

Estimated annual production

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Annual electricity savings

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Payback period

Years until the system pays for itself.

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Net savings over 25 years

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Last updated June 30, 2026. Results update automatically as you type.

How it works

Annual production = system size × production per kW. Annual savings = production × your electricity rate. Payback period = install cost ÷ annual savings. The 25-year figure subtracts the install cost from 25 years of savings. This is a simple-payback model: it ignores rate inflation (which shortens payback) and gradual panel degradation (which lengthens it), so treat it as a clear ballpark.

Frequently asked questions

What is a good solar payback period?

In most regions a payback period of 6–10 years is considered good. Under 6 years is excellent; over 12 years means you should double-check your install quote and electricity rate.

Does this include the federal tax credit?

Enter your cost AFTER any tax credit or rebate in the "net install cost" field, and the payback will reflect it.

Why ignore electricity price inflation?

Rates usually rise over time, which makes real payback faster than this estimate. We keep the core model simple and conservative so you are not over-promised.

These calculators provide general estimates for educational purposes only and are not financial advice. Real-world results depend on factors not captured here. Verify figures independently before making any purchase or financial decision.