Solar Panel Savings Calculator
Calculate your estimated return on investment and monthly energy savings.
Financial Forecast
Estimated Net Cost
$0.00
Payback Period
0.0 Years
Monthly Production Savings
$0.00
25-Year Lifetime Savings
$0.00
*Includes 30% Federal Investment Tax Credit (ITC). Calculations assume 78% system efficiency and fixed energy rates.
How Much Can You Really Save with Solar?
Switching to solar energy is one of the most effective ways to reduce your carbon footprint and lower your long-term living expenses. However, the true "savings" depend on more than just the number of panels on your roof. This calculator factors in your local utility rates, solar irradiance (sun hours), and government incentives to provide a realistic view of your Return on Investment (ROI).
Understanding the Key Metrics
- System Size (kW): Most residential systems range from 5kW to 10kW. A larger system generates more power but costs more upfront.
- Daily Sun Hours: This is not just daylight hours, but "Peak Sun Hours" where the sun's intensity is sufficient for maximum power generation.
- Federal Tax Credit (ITC): Under current US law, homeowners can deduct 30% of the solar installation cost from their federal taxes, significantly reducing the net price.
The Payback Period Explained
The solar payback period is the time it takes for the cumulative energy savings to equal the initial cost of the system. In the United States, the average payback period typically falls between 6 to 10 years. Since most solar panels are warrantied for 25 years, you can expect 15 to 19 years of "free" electricity after the system has paid for itself.
Example Scenario
Imagine a homeowner in Florida with a 6kW system. If they pay $3.00 per watt, the gross cost is $18,000. After applying the 30% Federal Tax Credit ($5,400), the net cost drops to $12,600. If the system produces $150 worth of electricity per month, the annual savings is $1,800. In this scenario, the payback period would be exactly 7 years.