Osrs Mage Calculator

Fact-checked and reviewed by David Chen, CFA • Senior Energy Consultant & Financial Analyst.

Switching to solar power is a significant financial decision. Use our solar panel roi calculator to estimate your potential savings, payback period, and total return on investment to see if solar is right for your home.

Solar Panel ROI Calculator

Total System Cost ($)

Tax Credits & Incentives ($)

Monthly Electricity Savings ($)

Annual Maintenance Cost ($)

Enter details and click Calculate to see your results.

Please enter valid positive numbers for all required fields.

Solar Panel ROI Calculator Formula

Net System Cost = Total Cost – Incentives
Annual Savings = (Monthly Savings × 12) – Annual Maintenance
Payback Period = Net System Cost / Annual Savings

Formula Source: Office of Energy Efficiency & Renewable Energy

Variables:

Total System Cost: The gross amount paid for equipment, labor, and permits.
Tax Credits: Federal or state rebates (e.g., ITC) that reduce the net cost.
Monthly Savings: The average amount you expect to save on your utility bill.
Annual Maintenance: Recurring costs like cleaning or inverter repairs.

What is Solar Panel ROI?

ROI (Return on Investment) for solar panels measures the profitability of your solar energy system. It compares the net cost of the installation against the total electricity savings over the system’s lifetime, which is typically 25 to 30 years.

A “Good” ROI typically results in a payback period of 6 to 10 years, meaning the system pays for itself long before the manufacturer’s warranty expires, providing over a decade of essentially “free” energy.

How to Calculate Solar Panel ROI (Example)

Calculate Net Cost: If a system costs $20,000 and you get a 30% tax credit ($6,000), your Net Cost is $14,000.
Calculate Annual Savings: If you save $150/month, that’s $1,800/year. Subtract $50 for annual maintenance = $1,750 net savings.
Find Payback: $14,000 / $1,750 = 8 years.
Lifetime Savings: Multiply annual savings by 25 years ($1,750 * 25 = $43,750) and compare to initial cost.

Frequently Asked Questions (FAQ)

Does solar increase home value? Yes, studies by Zillow and NREL show that solar panels increase home resale value by an average of 4.1%.

What is the average ROI of solar? Most homeowners see a 10% to 20% annual ROI, significantly higher than traditional stock market averages.

Do I still pay for electricity? Yes, unless you have a battery system and sufficient production, you will still pay fixed utility connection fees.

How long do panels last? Most solar panels have a performance warranty for 25 years but can continue producing power for 35+ years.