When to use this: when you have a quote in hand and need a sanity check on the payback period, or before requesting quotes to know what system size makes sense for your bill. Enter your last 12 months of average kWh use, your blended electric rate, and the proposed system size.

Solar Panel Payback Calculator

Estimate years to break-even from system size, install cost, electric rate, and sun hours. Includes the 30% federal residential clean-energy tax credit.

Typical home: 6-10 kW
2026 U.S. average: $2.80-$3.50/W
SE/Mid-Atlantic ~4.5; SW ~6.0 (see NREL PVWatts)
U.S. residential avg ~$0.16; check your bill
U.S. residential avg ~10,500 kWh
State / utility rebates beyond federal credit
30% through 2032 (IRA, residential)
Panel degradation; ~0.5%/yr is typical

Results

Year 1 production—
Year 1 savings—
Gross install cost—
Net cost (after credits)—
Simple payback—
25-year net savings—

Estimates only. Real results depend on roof orientation, shading, utility net-metering policy, and equipment warranty terms. Always get at least three quotes before signing.

Last reviewed: April 2026

Tools we used or recommend for this work: an Emporia Vue 2 whole-home energy monitor for confirming the kWh consumption figure you fed this calculator, a clamp meter rated for solar DC for any troubleshooting, and the EnergySage marketplace if you want competing installer quotes against the system size this calc implied. Links may be affiliate-tagged where the brand has a program.

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