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Solar Panel ROI & Savings Calculator

Calculation Results

Net System Cost

$0

Payback Period

0 Years

25-Year Net Savings

$0

ROI (Return on Investment)

0%

function calculateSolarROI() { var cost = parseFloat(document.getElementById('solar_cost').value); var taxCreditPct = parseFloat(document.getElementById('solar_tax_credit').value); var monthlyBill = parseFloat(document.getElementById('solar_monthly_bill').value); var systemSize = parseFloat(document.getElementById('solar_size').value); if (isNaN(cost) || isNaN(monthlyBill) || isNaN(systemSize)) { alert("Please fill in all fields with valid numbers."); return; } // Logic var taxCreditAmount = cost * (taxCreditPct / 100); var netCost = cost – taxCreditAmount; // Estimating production: 1kW produces roughly 120kWh per month (average sunlight) // Estimating electricity rate: $0.16 per kWh var annualProductionkWh = systemSize * 1450; // Average annual kWh per kW in US var avgRate = 0.16; var annualSavings = annualProductionkWh * avgRate; // If system covers 100% of bill, savings cannot exceed bill significantly without net metering var maxAnnualSavings = monthlyBill * 12; var actualAnnualSavings = Math.min(annualSavings, maxAnnualSavings * 1.1); // Allowing for some credit var paybackYears = netCost / actualAnnualSavings; var total25YearSavings = (actualAnnualSavings * 25) – netCost; var roiPercent = (total25YearSavings / netCost) * 100; // Display results document.getElementById('solar_results').style.display = 'block'; document.getElementById('res_net_cost').innerText = '$' + netCost.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('res_payback').innerText = paybackYears.toFixed(1) + ' Years'; document.getElementById('res_savings').innerText = '$' + total25YearSavings.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('res_roi').innerText = roiPercent.toFixed(1) + '%'; }

Understanding Your Solar Investment

Switching to solar power is one of the most significant financial decisions a homeowner can make. Not only does it reduce your carbon footprint, but it also serves as a long-term hedge against rising energy costs. This Solar Panel ROI Calculator helps you estimate the time it takes for the system to pay for itself and the total profit you could see over 25 years.

Key Factors Influencing Your Solar ROI

• The Federal Investment Tax Credit (ITC): Currently, the US government offers a 30% tax credit on residential solar installations. This significantly reduces the upfront net cost.
• Local Electricity Rates: The higher your utility rates, the faster your solar panels will pay for themselves. Savings are calculated by multiplying the energy produced by the rate you would have paid the utility company.
• Sunlight Exposure: A system in Arizona will generate more energy than the same-sized system in Washington. Our calculator assumes an average of 1,450 kWh per year for every 1 kW of installed capacity.
• Net Metering: If your state has favorable net metering laws, you can sell excess energy back to the grid at retail rates, further accelerating your ROI.

Example Calculation

Imagine you install a 6kW system at a gross cost of $18,000. After the 30% Federal Tax Credit ($5,400), your Net Cost is $12,600. If your system saves you $150 per month on electricity, your annual savings are $1,800. In this scenario, your payback period would be roughly 7 years, leaving you with 18+ years of "free" electricity.

Frequently Asked Questions

How long do solar panels last? Most modern solar panels come with a 25-year performance warranty, though they often continue producing power for 30 to 40 years at a slightly reduced efficiency.

Does solar increase home value? Yes, studies by Zillow and Lawrence Berkeley National Laboratory show that homes with solar panels often sell for a premium compared to homes without them.