Solar Panel Savings Calculator
Will solar pay off? Enter your electric bill and system cost to estimate the payback period and net savings after the 30% federal tax credit.
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Learn moreHow solar pays back
Solar pays back by erasing part of your electric bill every month. Two things speed it up: the 30% federal tax credit that cuts the net cost, and rising utility rates that make each year’s avoided bill worth more. Most homeowners reach payback well before the panels’ 25-year warranty ends.
How it’s calculated & sources
Net cost = system cost × (1 − incentive%). Annual savings = your yearly bill × the share solar offsets, grown each year by utility inflation. Payback is the year cumulative savings cover the net cost; lifetime savings subtract the net cost from total savings.
Benchmark: typical residential solar pays back in ~7–10 years; the federal clean-energy credit is 30% through 2032 (IRS / NREL).
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
A $22,000 system ($15,400 after the 30% credit) offsetting 90% of a $160/month bill saves about $1,730 in year one and pays back in roughly 8 years.
Frequently asked questions
Does this include financing?
No — it assumes cash or treats the system cost as the amount to recover. A loan adds interest but spreads the cost; payback on savings is similar.
What about net metering?
Savings depend on your utility’s net-metering rules. Where excess power earns full retail credit, savings are higher; where it doesn’t, size the system closer to your usage.