Solar Savings Calculator
Free savings tool
Solar Savings Calculator
Enter your electricity bill, system cost, and local rate — see your payback period, 25-year savings, and monthly cash flow with rate inflation.
Your electricity bill
Your solar system
View year-by-year breakdown
| Year | Bill without solar | Solar savings | Cumulative | Net position |
|---|
Estimates based on stated assumptions. Actual savings depend on production, consumption, utility policies, and rate changes.
Frequently Asked Questions
How much money will I save with solar panels?
The savings depend on your electricity bill, rate, and system cost. A typical US homeowner with a $150 monthly bill saves approximately $1,800 in year one and over $77,000 over 25 years (at 5 percent annual rate increases) against a net system cost of about $8,400 after the 30 percent federal tax credit. Enter your actual bill and rate above to see your specific savings projection.
How long does it take for solar panels to pay for themselves?
The average payback period in the US is 5 to 8 years after incentives. With the 30 percent federal tax credit, a $20,000 system costs $14,000 net. At $1,800 annual savings, payback is about 7.8 years. Higher electricity rates, stronger state incentives, or lower installation costs shorten the payback — some homeowners in California and New York break even in 4 to 5 years. The calculator above shows your exact payback month.
Is solar worth it in 2026?
For most homeowners paying more than $0.12 per kWh, solar is worth it by a wide margin in 2026. Panel prices have dropped to $0.25 to $0.35 per watt, the 30 percent federal tax credit is locked through 2032, and electricity rates continue rising 3 to 7 percent annually. The combination produces a typical ROI of 200 to 500 percent over 25 years — no other home improvement comes close.
Is solar worth it with a $100 monthly electricity bill?
Yes. A $100 monthly bill produces $1,200 in year one savings, growing to approximately $49,000 over 25 years at 5 percent annual rate increases. Against a net system cost of $6,000 to $8,000 (after tax credit), the payback period is 5 to 7 years, leaving 18 to 20 years of free electricity. Even at this relatively modest bill, the lifetime ROI exceeds 500 percent.
How do I calculate the ROI on solar panels?
ROI = (Total 25-year savings minus Net system cost) divided by Net system cost, times 100. For example: $77,000 total savings minus $8,400 net cost = $68,600 net profit. ROI = $68,600 ÷ $8,400 × 100 = 817 percent. The calculator above computes this automatically, including annual rate inflation and panel degradation over 25 years.
Does the calculator account for rising electricity rates?
Yes. You set the annual electricity rate increase (default 5 percent, adjustable from 0 to 15 percent) and the calculator models every year for 25 years with compounding rate inflation. This is critical because the savings grow each year as your fixed solar production offsets increasingly expensive grid electricity. At 5 percent annual increase, your year-25 savings are roughly 3.4 times your year-1 savings.
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