Solar ROI Estimator
Calculate your solar system's payback period, lifetime savings, and return on investment based on local electricity rates and incentives.
Is solar worth it for your home? This solar savings calculator projects your payback period and 25-year return on investment using real electricity rates, the federal Investment Tax Credit (ITC), and panel degradation curves. Enter your system cost and size, select your region for local utility rates, and see exactly when your solar investment pays for itself — and how much you save after that.
The average US residential solar system pays back in 7-12 years and generates 200-400% ROI over 25 years. Need to figure out system size first? Use our solar array sizing calculator to determine how many panels you need.
System Details
Before incentives
$3.13/watt
Quick system presets:
Location & Electricity Rates
Historical average ~3%/year
Based on 1200 kWh/kW for your region
Tax Credits & Incentives
ITC under Inflation Reduction Act
Check DSIRE for local incentives
$2.19/watt after incentives
Results
Enter your system details to see ROI
Understanding Solar ROI
Federal Tax Credit (ITC)
The Investment Tax Credit allows you to deduct 30% of solar installation costs from federal taxes through 2032. It steps down to 26% in 2033 and 22% in 2034.
Panel Degradation
Solar panels typically degrade 0.3-0.5% per year. Quality panels are warranted to produce at least 80% of rated output after 25 years.
Electricity Rate Trends
US electricity rates have historically increased 2-3% annually. Higher rate increases improve solar ROI as your locked-in savings grow over time.
Net Metering
This calculator assumes full retail credit for excess production. Check your utility's net metering policy, as some offer reduced credits.
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We can provide an accurate proposal with product pricing and financing options.