Solar Panel Payback Calculator
Years to break even on a home solar installation.
Enter your values
ⓘ Live results
Results
- Payback period
- 8.6 years
- Net system cost
- $14,000.00
- Annual savings
- $1,620.00
- 25-year total savings (est.)
- $26,500.00
Quick answer
Payback period is the net system cost divided by annual electricity bill savings.
payback years = (system cost - incentives) / annual savings
How to use the Solar Panel Payback Calculator
- 1Enter the total solar system cost and any tax credits or rebates you qualify for (like the 30% federal tax credit).
- 2Enter your current average monthly electric bill.
- 3Estimate what percentage of your bill solar will offset to see your break-even point in years.
Worked example
Using the values the calculator loads with:
Inputs
- System cost20000
- Tax credits / rebates6000
- Current avg monthly electric bill150
- Percent of bill offset by solar90 %
Results
- Payback period8.6 years
- Net system cost$14,000.00
- Annual savings$1,620.00
- 25-year total savings (est.)$26,500.00
Frequently asked questions
What's a typical solar payback period?
Most US homeowners see payback in 6-10 years, after which electricity is essentially free for the panel's remaining life.
Do panels lose efficiency over time?
Yes, typically about 0.5% per year, but most panels are warrantied for 25 years at 80%+ output.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.