California Salary Tax Calculator

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Solar Panel ROI & Savings Calculator

Your Solar Projection

Net System Cost:

Estimated Payback Period:

Estimated Annual Savings:

25-Year Net Savings:

function calculateSolarSavings() { var bill = parseFloat(document.getElementById('monthlyBill').value); var size = parseFloat(document.getElementById('systemSize').value); var hours = parseFloat(document.getElementById('sunHours').value); var rate = parseFloat(document.getElementById('utilityRate').value); var cpw = parseFloat(document.getElementById('costPerWatt').value); var tax = parseFloat(document.getElementById('taxCredit').value); if (isNaN(bill) || isNaN(size) || isNaN(hours) || isNaN(rate) || isNaN(cpw) || isNaN(tax)) { alert("Please ensure all fields are filled with valid numbers."); return; } // Calculation Logic var grossCost = size * 1000 * cpw; var taxCreditValue = grossCost * (tax / 100); var netCost = grossCost – taxCreditValue; // Production: kW * Hours * 30.42 days var monthlyProductionKwh = size * hours * 30.42; var monthlySavingsValue = Math.min(bill, (monthlyProductionKwh * rate)); var annualSavingsValue = monthlySavingsValue * 12; var paybackPeriod = netCost / annualSavingsValue; var totalSavings25Years = (annualSavingsValue * 25) – netCost; // Output Display document.getElementById('resNetCost').innerText = "$" + netCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resPayback').innerText = paybackPeriod.toFixed(1) + " Years"; document.getElementById('resAnnualSavings').innerText = "$" + annualSavingsValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalSavings').innerText = "$" + totalSavings25Years.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('solarResult').style.display = "block"; }

Understanding Your Solar Return on Investment (ROI)

Deciding to switch to solar energy is a significant financial commitment. To understand if it's the right move for your home, you must look beyond the environmental benefits and analyze the Solar ROI. This calculator helps you estimate how quickly your system will pay for itself and how much you can save over the typical 25-year lifespan of solar panels.

Key Factors in Solar Calculations

  • System Size (kW): The total capacity of your panels. A typical residential system ranges from 5kW to 10kW.
  • Sunlight Hours: Not just daylight, but "peak sun hours" where the sun is powerful enough to generate maximum electricity. This varies by geography.
  • Utility Rate: The price your electricity provider charges per kWh. The higher your local rate, the more valuable your solar-generated power becomes.
  • Federal Tax Credit (ITC): As of 2024, the Investment Tax Credit allows you to deduct 30% of your solar installation costs from your federal taxes.

Solar Savings Example

Let's look at a realistic scenario for a homeowner in a sunny state:

Location: Arizona
System Size: 7 kW
Cost per Watt: $3.00 ($21,000 total)
Federal Credit (30%): -$6,300
Net Cost: $14,700
Annual Savings: If the system generates $1,800 worth of power yearly, the payback period is 8.1 years. After that, the electricity is essentially free.

How to Increase Your Solar Savings

To maximize your investment, consider these three strategies:

  1. Energy Efficiency First: Reduce your overall load by upgrading to LED lighting and smart thermostats before sizing your system.
  2. Monitor Net Metering: Understand your utility's net metering policy. Some utilities pay you 1:1 for the power you send back to the grid, while others pay a lower wholesale rate.
  3. Regular Maintenance: Keep panels clear of debris and bird droppings. Even a small amount of shading or dirt can drop production by 10-20%.

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