Solar Panel Savings Calculator
Estimate solar panel system cost, payback period, and 25-year savings with federal tax credit and state incentives.
System Size
13.0 kW
Net Cost
$33,659.49
Payback Period
14.0 years
Annual Savings
$2,400.00
25-Year Savings
$26,340.51
CO2 Offset/yr
7.3 tons
Solar System Cost Breakdown
| Estimated System Size | 13.0 kW |
| Sun Hours (southeast) | 4.5 hrs/day |
| Gross System Cost | $33,659.49 |
| Federal Tax Credit (0%) | - $0.00 |
| Net Cost After Incentives | $33,659.49 |
Savings Projection
| Monthly Usage | 1,429 kWh |
| Annual Usage | 17,143 kWh |
| Annual Savings | $2,400.00 |
| Payback Period | 14.0 years |
| 25-Year Net Savings | $26,340.51 |
| Annual CO2 Offset | 7.3 tons |
Use the Solar Panel Savings Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Our Solar Panel Savings Calculator helps you estimate the upfront cost of a solar energy system, project its payback period, and forecast your total savings over 25 years. This includes factoring in the 30% federal investment tax credit (ITC) available through 2032 and any applicable state incentives, providing a comprehensive financial outlook for your solar investment.
The calculator determines system size based on your monthly electricity bill and average sunlight hours in your area, then estimates cost per watt. It applies the 30% federal ITC directly to the system cost and incorporates state-specific rebates or performance-based incentives (SRECs) if entered. Payback period is calculated by dividing the net system cost by annual electricity savings, and 25-year savings are projected using an assumed annual electricity price increase.
Remember to accurately input your average monthly electricity bill and research specific state and local incentives applicable to your region, as these can significantly impact your savings. Don't forget to account for potential increases in electricity rates over time, which will further amplify your solar savings.
Example: 2026 Solar Savings for a California Home
- 1 A homeowner in San Diego, California, has an average monthly electricity bill of $150. They've identified a state rebate of $0.20 per watt for new solar installations. Their average daily sunlight hours are 5.8.
- 2 The calculator estimates a 6 kW system is needed to offset their bill. Assuming an average cost of $2.80/watt, the gross system cost is $16,800. The 30% federal ITC reduces this by $5,040. The state rebate provides an additional $1,200 ($0.20/watt * 6000 watts). Net cost becomes $10,560. With an estimated annual electricity savings of $1,800, the payback period is approximately 5.87 years.
- 3 Over 25 years, with an assumed 3% annual electricity price increase, the homeowner is projected to save over $65,000.
- 4 This example demonstrates how federal and state incentives significantly reduce the upfront investment, leading to a quicker payback and substantial long-term savings for homeowners embracing solar energy.
Source: DOE · Last updated: April 2026
Frequently Asked Questions
What is the federal solar tax credit for 2026?
How long does it take for solar panels to pay for themselves?
How much can solar panels save over 25 years?
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