Solar Payback Period Calculator

Calculate how long it will take to recoup your solar panel investment based on installation costs, energy savings, and available incentives. This helps you make an informed decision about your solar investment.

Total cost including panels, labor, and equipment
Expected annual savings on your electricity bill
30% federal tax credit (if applicable)
Any additional state or local incentives
Your current electricity rate per kilowatt-hour
Expected annual increase in electricity rates

How to Use This Calculator

  1. Enter Installation Cost: Input the total cost of your solar panel installation.
  2. Annual Savings: Enter your expected annual energy savings.
  3. Add Incentives: Include any tax credits or incentives you qualify for.
  4. Electricity Rate: Specify your current electricity rate.
  5. Rate Increase: Enter expected annual increase in electricity rates.
  6. Calculate: Click the button to see your payback period and ROI.

Common Solar Incentives

Incentive Type Amount Notes
Federal Tax Credit 30% Available through 2032
State Tax Credits Varies Check local state programs
SRECs Varies Solar Renewable Energy Credits
Local Rebates Varies Check utility and city programs

Important Considerations:

  • Payback period varies by location and system size
  • Consider maintenance costs over system lifetime
  • Account for panel degradation over time
  • Factor in potential property value increase
  • Consider financing options and interest rates
  • Check local regulations and permitting costs

For professional installations, consult with a solar expert to verify calculations and consider site-specific factors.