Find out how long it takes for your solar panel investment to pay for itself. Enter your system details below to calculate your payback period and lifetime savings.
Federal ITC, state rebates, etc.
Check your installer's estimate
Payback Period
9 yrs 9 mo
Net System Cost
$14,000
First Year Savings
$1,260
Lifetime Savings (25 yrs)
$444
Return on Investment: 3%
Year 5
$6,690
total savings
$-7,310
still paying off
Year 10
$14,444
total savings
+$444
net profit
Year 15
$23,435
total savings
+$9,435
net profit
Year 20
$33,857
total savings
+$19,857
net profit
Year 25
$45,939
total savings
+$31,939
net profit
The solar payback period is the time it takes for the energy savings from your solar panels to equal the initial cost of the system. Once you pass the payback point, every dollar saved on electricity is pure profit. Factors that influence your payback include system cost, local electricity rates, annual energy production, rate of electricity price increases, and available incentives.
Most residential solar panel systems pay for themselves in 6 to 10 years, depending on your location, electricity rates, system cost, and available incentives. After the payback period, the electricity your panels generate is essentially free.
Solar production depends on your system size (kW), location, roof orientation, and shading. A typical rule of thumb is that 1 kW of solar panels produces about 1,200 to 1,600 kWh per year in most US locations. Your installer can provide a more precise estimate.
Yes. Net metering lets you sell excess electricity back to the grid at retail rates, which significantly improves your payback period. Without net metering, excess production may be compensated at lower wholesale rates.
The federal Investment Tax Credit (ITC) allows you to deduct 30% of the cost of a solar installation from your federal taxes. This dramatically reduces your net cost and shortens the payback period. Enter your system cost after subtracting any incentives for the most accurate result.
Solar Panel Size Calculator
Determine how many solar panels you need based on your electricity usage, local sun hours, and panel wattage. Get an accurate system size estimate for your home.
Electricity Cost Calculator
Calculate how much it costs to run any appliance or device. Enter wattage, usage hours, and your electricity rate to see daily, monthly, and yearly costs.