Estimate solar panel system cost, payback period, 25-year savings, ROI, and environmental impact. Includes federal ITC, financing options, and regional sun data.
Last updated: February 23, 2026
Estimate solar panel system cost, payback period, 25-year savings, ROI, and environmental impact. Includes federal ITC, financing options, and regional sun data. This tool runs in-browser for fast results without accoun…
Yes. Solar Panel Savings Calculator is free to use on ConvertCrunch.
Results depend on the inputs and assumptions you provide. Always validate final numbers or outputs against your official workflow before publishing or filing.
ConvertCrunch tools are built for immediate use with no signup required.
CAM Charges Estimator
Estimate common area maintenance charges and annual tenant pass-through costs.. Free online, browser-based tool with instant results and no signup.
Closing Cost Calculator
Estimate your home closing costs including lender fees, title insurance, escrow, and prepaid items.
Commercial Lease Calculator
Estimate occupancy costs for gross, modified gross, and triple-net commercial lease structures.
Home Office Percentage Calculator
Calculate business-use percentage of your home for reimbursement and tax planning.
Lease vs Buy Commercial Space Calculator
Compare long-term total cost of leasing commercial space versus buying property.
Mortgage Affordability Calculator
Find out how much house you can afford based on your income, debts, down payment, and interest rate.
Office Space Cost Calculator
Estimate office occupancy cost per employee based on square footage, lease rate, and operating expenses.
Rent vs Buy Calculator
Compare the total cost of renting versus buying a home over time. See which option saves you more money.
Estimate your savings, payback period, and environmental impact from going solar.
Your Estimated Payback
6.1 years
Payback Period
6.1 yr
25-Year Net Savings
$49,592
ROI
421%
Net System Cost
$11,772
System Size
6.12 kW
Annual Production (Yr 1)
10,714 kWh
Monthly Production (Yr 1)
893 kWh
| Year | Production (kWh) | Rate ($/kWh) | Annual Savings | Cumulative Savings | Net Position |
|---|---|---|---|---|---|
| 1 | 10,714 | $0.168 | $1,800 | $1,800 | -$9,972 |
| 2 | 10,661 | $0.173 | $1,845 | $3,645 | -$8,128 |
| 3 | 10,607 | $0.178 | $1,891 | $5,535 | -$6,237 |
| 4 | 10,554 | $0.184 | $1,938 | $7,473 | -$4,299 |
| 5 | 10,502 | $0.189 | $1,986 | $9,459 | -$2,314 |
| 6 | 10,449 | $0.195 | $2,035 | $11,494 | -$279 |
| 7 | 10,397 | $0.201 | $2,086 | $13,579 | $1,807 |
| 8 | 10,345 | $0.207 | $2,137 | $15,717 | $3,944 |
| 9 | 10,293 | $0.213 | $2,191 | $17,907 | $6,135 |
| 10 | 10,242 | $0.219 | $2,245 | $20,152 | $8,380 |
| 11 | 10,190 | $0.226 | $2,301 | $22,453 | $10,681 |
| 12 | 10,140 | $0.233 | $2,358 | $24,811 | $13,039 |
| 13 | 10,089 | $0.240 | $2,417 | $27,228 | $15,455 |
| 14 | 10,038 | $0.247 | $2,477 | $29,704 | $17,932 |
| 15 | 9,988 | $0.254 | $2,538 | $32,242 | $20,470 |
| 16 | 9,938 | $0.262 | $2,601 | $34,843 | $23,071 |
| 17 | 9,889 | $0.270 | $2,666 | $37,509 | $25,737 |
| 18 | 9,839 | $0.278 | $2,732 | $40,241 | $28,469 |
| 19 | 9,790 | $0.286 | $2,800 | $43,041 | $31,269 |
| 20 | 9,741 | $0.295 | $2,870 | $45,911 | $34,139 |
| 21 | 9,692 | $0.303 | $2,941 | $48,852 | $37,080 |
| 22 | 9,644 | $0.313 | $3,014 | $51,866 | $40,094 |
| 23 | 9,596 | $0.322 | $3,089 | $54,955 | $43,182 |
| 24 | 9,548 | $0.332 | $3,166 | $58,120 | $46,348 |
| 25 | 9,500 | $0.342 | $3,244 | $61,365 | $49,592 |
Annual CO₂ Offset
4.5 metric tons
25-Year CO₂ Offset
105.2 metric tons
Equivalent Trees Planted
74
Cars Taken Off Road
1.0
$20,758
Solar photovoltaic (PV) panels convert sunlight directly into electricity using semiconductor cells. When photons from sunlight hit the silicon cells, they knock electrons loose, creating a flow of direct current (DC) electricity. An inverter then converts this DC power to alternating current (AC) used by your home. Any excess electricity can be sent back to the grid through net metering, earning you credits on your utility bill. The amount of electricity a system produces depends on panel efficiency, sun exposure, roof orientation, and geographic location.
The federal Investment Tax Credit (ITC) is one of the most significant incentives for going solar in the United States. As of 2024, the ITC allows homeowners to deduct 30% of the total cost of a solar energy system from their federal taxes. This credit was extended through 2032 by the Inflation Reduction Act. The ITC applies to the full system cost, including equipment, labor, permitting, and sales tax. It is a dollar-for-dollar reduction in the income taxes you owe, not just a deduction, making it extremely valuable. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year.
Several key factors influence the return on investment from a solar panel system. Your geographic location determines how many peak sun hours your panels receive daily, which directly affects electricity production. Local electricity rates play a crucial role as well — homeowners paying higher utility rates see faster payback periods. System size, installation costs, panel efficiency, roof angle and orientation, shading from trees or buildings, and local incentives all contribute to the overall financial picture. Rising electricity prices over time actually improve solar ROI, as the value of the electricity you produce increases while your system cost remains fixed.
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. When your panels produce more electricity than your home uses, the excess is sent back to the utility grid and your electric meter effectively runs backward. You receive credits at the retail electricity rate for this excess generation, which you can use when your panels are not producing enough (such as at night or on cloudy days). Net metering policies vary by state and utility company. Some states offer full retail rate credits, while others may credit at a lower wholesale rate. Understanding your local net metering policy is important for accurately estimating solar savings.
All solar panels experience a gradual decrease in performance over their lifespan, known as degradation. Industry-standard degradation rates are approximately 0.5% per year, meaning a panel will produce roughly 87.5% of its original output after 25 years. Most manufacturers guarantee at least 80% production at the 25-year mark. Degradation is caused by factors such as UV exposure, thermal cycling, humidity, and mechanical stress. Modern monocrystalline panels tend to degrade more slowly than older polycrystalline technology. This calculator accounts for degradation in its 25-year projections, providing a realistic picture of long-term energy production and savings.
Purchasing a solar system outright with cash offers the highest overall return on investment. You avoid interest payments, claim the full federal ITC immediately, and start saving from day one with no monthly loan obligations. However, the upfront cost can be significant, often ranging from $15,000 to $30,000 or more after incentives. Solar loans allow homeowners to go solar with little or no money down. Monthly loan payments are often less than the electricity savings, resulting in immediate positive cash flow. However, interest charges increase the total cost of the system, extending the effective payback period. Loan terms typically range from 10 to 25 years, with interest rates varying by lender and creditworthiness. When evaluating financing options, compare the total cost of the loan (principal plus interest) against the projected 25-year savings to determine the true financial benefit.