Solar Panel Payback Calculator
Calculate how many years it will take for energy savings to equal the initial cost of your solar panel system, including federal tax credits and panel degradation.
System Details
Before incentives
US average: $0.12/kWh
4-6 hours typical
30% through 2032
0.5% typical
2-3% historical average
75-85% real-world typical
Solar Payback
Solar payback period is the time it takes for energy savings to equal your initial investment. The average U.S. payback is 6-10 years, with panels lasting 25-30 years.
- • Federal tax credit: 30% through 2032
- • Panel degradation: ~0.5% per year
- • Net metering policies vary by state
How to Use
- Enter your system size and installation cost
- Set your electricity rate and sun hours
- Click Calculate to see payback period and savings
FAQ
What affects solar payback time?
Electricity rates, sunlight hours, system cost, incentives, and roof orientation all impact payback. Higher electricity costs and more sun mean faster payback.
Is solar worth it if I move?
Solar panels typically increase home value by 3-4%. Most buyers pay more for solar homes, so you often recoup your investment even if you sell before payback.
Should I wait for better panels?
Current panels are already highly efficient. Waiting means missing out on savings and the 30% tax credit, which decreases after 2032.