Estimate your payback period and long-term electricity savings.
Net System Cost$0
Payback Period0 Years
25-Year Savings$0
ROI (25-Yr)0%
How to Calculate Your Solar Return on Investment
Understanding the financial viability of solar energy requires looking beyond the initial sticker price. To accurately calculate your ROI, you must consider the Net System Cost, which is the gross price minus federal and state incentives (like the 30% Residential Clean Energy Credit).
Realistic ROI Example:
If a 10kW system costs $25,000 and you receive a 30% tax credit ($7,500), your net investment is $17,500. If that system saves you $200/month on electricity, your simple payback period is approximately 7.3 years.
Factors That Speed Up Your Payback Period
Local Electricity Rates: The more you pay your utility company per kWh, the faster your solar panels pay for themselves.
Sun Exposure: Homes in high-irradiance areas (like Arizona or California) generate more power per panel than those in cloudy regions.
SRECs and Incentives: Some states offer Solar Renewable Energy Certificates (SRECs) which provide ongoing cash payments for the energy you produce.
Utility Inflation: Traditionally, utility rates rise 3-5% annually. Solar "locks in" your rate, making your savings more valuable every year.
Is Solar Panels Worth It in 2024?
With the extension of the Federal Investment Tax Credit (ITC) at 30% through 2032, the math for solar has never been better. Most homeowners see a full return on investment within 6 to 10 years, while the panels are warrantied to last 25 years or more, providing 15+ years of virtually free electricity.
function calculateSolarROI() {
var cost = parseFloat(document.getElementById('systemCost').value);
var taxCredit = parseFloat(document.getElementById('taxCredit').value);
var monthlyBill = parseFloat(document.getElementById('monthlyBill').value);
var offset = parseFloat(document.getElementById('offsetPercentage').value) / 100;
var escalation = parseFloat(document.getElementById('energyEscalation').value) / 100;
var maintenance = parseFloat(document.getElementById('maintenance').value);
if (isNaN(cost) || isNaN(taxCredit) || isNaN(monthlyBill)) {
alert("Please enter valid numbers for cost, tax credit, and monthly bill.");
return;
}
// Calculation Logic
var netCost = cost – (cost * (taxCredit / 100));
var initialAnnualSavings = (monthlyBill * 12) * offset;
var cumulativeSavings = 0;
var currentYearSavings = initialAnnualSavings;
var paybackYear = 0;
var foundPayback = false;
for (var year = 1; year = netCost) {
paybackYear = year – ((cumulativeSavings – netCost) / netAnnualBenefit);
foundPayback = true;
}
// Increase savings by utility inflation rate for next year
currentYearSavings *= (1 + escalation);
}
var totalProfit = cumulativeSavings – netCost;
var roiPercentage = (totalProfit / netCost) * 100;
// Display Results
document.getElementById('solarResults').style.display = 'block';
document.getElementById('netCostDisplay').innerHTML = '$' + netCost.toLocaleString(undefined, {maximumFractionDigits: 0});
if (foundPayback) {
document.getElementById('paybackDisplay').innerHTML = paybackYear.toFixed(1) + ' Years';
} else {
document.getElementById('paybackDisplay').innerHTML = '> 25 Years';
}
document.getElementById('totalSavingsDisplay').innerHTML = '$' + cumulativeSavings.toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('roiDisplay').innerHTML = roiPercentage.toFixed(0) + '%';
// Smooth scroll to results
document.getElementById('solarResults').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}