Estimate only. Use the price from your own quote and check how your utility credits the energy you export.
How it works
The calculator follows your savings year by year for 30 years:
- First-year savings: system size × your state's solar production × your state's average residential electricity price × the value of each solar kWh.
- Each later year: the previous year's savings, raised by the electricity price increase and lowered by the panels' output loss.
- Break-even: the year when total savings reach the system cost.
- Net gain: total savings over 25 years minus the cost.
If the result shows 30 years, the system does not pay for itself within 30 years with those values.
Default values
- Electricity price increase: 3% a year. The U.S. average residential price rose from a little more than 12 cents per kWh in 2013 to 16 cents in 2023, without adjusting for inflation (EIA). That is close to 3% a year. Enter 0% to see the result in today's dollars, since EIA found prices grew less than 1% over those 10 years after inflation.
- Panel output loss: 0.5% a year. The median of nearly 2,000 measured degradation rates in a National Renewable Energy Laboratory review (Jordan and Kurtz).
Is solar worth it for you?
Solar tends to be worth it where electricity is expensive, the sun is strong and your utility credits exported energy at or near the retail rate. It is less attractive where rates are low, with net billing that pays little for exports, or if you plan to move soon. The federal Residential Clean Energy Credit does not apply to systems placed in service after December 31, 2025, so the cost here is the full price.
The result does not include maintenance, an inverter replacement, home insurance changes or financing. If you use a loan, check the solar loan payment calculator for dealer fees.