Solar Savings Calculator
Calculate your solar panel savings, payback period, and 25-year ROI. Enter your electricity bill, system cost, and local incentives.
Solar panels reduce or eliminate your electric bill, protect against future rate increases, and may qualify for significant tax incentives. The federal solar investment tax credit (ITC) is currently 30% through 2032.
How to estimate your savings
- Average US monthly electric bill: ~$135/month (~1,620 kWh)
- A 5 kW solar system produces ~6,000–8,000 kWh/year depending on location
- At $0.13/kWh average, that's $780–$1,040/year in savings
- Net metering credits allow you to sell excess production back to the grid
Federal and state incentives
- Federal ITC: 30% of total system cost (installed through 2032)
- SREC markets: some states pay for Solar Renewable Energy Credits
- Property tax exemptions: many states exclude solar from property tax assessments
- Net metering: credits for excess electricity sent to the grid
Payback period factors
Average payback period in the US is 6–12 years depending on electricity rates, sunlight hours, system cost, and incentives. After payback, the remaining system life (25 years total) is pure savings.