Solar Panel ROI Calculator

Calculate the return on investment for solar panels and find out when your system will pay for itself.

How Solar ROI is Calculated

This calculator estimates your solar investment returns by considering:

Net cost: System price minus incentives and rebates.
Annual savings: Energy produced × electricity price - maintenance.
Future savings: Accounts for rising electricity prices and panel degradation (~0.5%/year).
Payback period: When cumulative savings equal your net investment.

ROI is calculated over 25 years, the typical warranty period for quality solar panels.

For a 6 kW system costing $15,000 with $4,500 incentives:

How long do solar panels take to pay for themselves?: Typical payback periods range from 6-12 years depending on system cost, electricity prices, and sunlight availability. After payback, you enjoy essentially free electricity for the remaining 15-20 years of system life.
What affects solar panel ROI?: Key factors include: electricity prices (higher = better ROI), sunlight hours in your location, system cost, available incentives/rebates, electricity price inflation, and panel efficiency degradation over time.
How long do solar panels last?: Quality solar panels typically last 25-30 years with minimal degradation (about 0.5% per year). Most manufacturers offer 25-year warranties. Inverters may need replacement after 10-15 years.