Solar panel payback calculator
Estimate how many years rooftop solar panels could take to pay for themselves, based on your electricity use, your electricity rate, local sunshine and your installer's quote.
Starting values: the US average residential electricity price and household use from the Energy Information Administration, and solar output for 9 US cities from PVWatts. Add the price from your quote to see payback.
Your home
All amounts in US dollars.
Results
Payback period
Add your installer’s quoted price to see payback
- First-year savings
- $1,962
- Savings over 25 years
- $66,899
- System size
- 7.1 kW
- Sized to cover your yearly use
- First-year generation
- 10,788 kWh
Year-by-year table
| Year | Generation (kWh) | Price per kWh | Saved that year | Saved so far |
|---|---|---|---|---|
| 1 | 10,788 | $0.182 | $1,962 | $1,962 |
| 2 | 10,734 | $0.187 | $2,011 | $3,973 |
| 3 | 10,680 | $0.193 | $2,061 | $6,035 |
| 4 | 10,627 | $0.199 | $2,112 | $8,147 |
| 5 | 10,574 | $0.205 | $2,165 | $10,312 |
| 6 | 10,521 | $0.211 | $2,219 | $12,530 |
| 7 | 10,468 | $0.217 | $2,274 | $14,804 |
| 8 | 10,416 | $0.224 | $2,330 | $17,134 |
| 9 | 10,364 | $0.230 | $2,388 | $19,522 |
| 10 | 10,312 | $0.237 | $2,447 | $21,970 |
| 11 | 10,261 | $0.244 | $2,508 | $24,478 |
| 12 | 10,209 | $0.252 | $2,571 | $27,049 |
| 13 | 10,158 | $0.259 | $2,634 | $29,683 |
| 14 | 10,107 | $0.267 | $2,700 | $32,383 |
| 15 | 10,057 | $0.275 | $2,767 | $35,150 |
| 16 | 10,007 | $0.283 | $2,836 | $37,986 |
| 17 | 9,957 | $0.292 | $2,906 | $40,892 |
| 18 | 9,907 | $0.301 | $2,979 | $43,871 |
| 19 | 9,857 | $0.310 | $3,053 | $46,923 |
| 20 | 9,808 | $0.319 | $3,128 | $50,052 |
| 21 | 9,759 | $0.329 | $3,206 | $53,258 |
| 22 | 9,710 | $0.338 | $3,286 | $56,544 |
| 23 | 9,662 | $0.349 | $3,367 | $59,911 |
| 24 | 9,613 | $0.359 | $3,451 | $63,362 |
| 25 | 9,565 | $0.370 | $3,537 | $66,899 |
Savings count only electricity your home no longer buys. Power sent to the grid is valued at zero. Grid emissions data has not been verified yet, so no carbon figure is shown. See the methodology for every formula and source.
Understand your results
- How solar payback is calculated
The payback formula step by step: system size, yearly output, the value of each kWh, rising prices and panel wear, with a worked example and the inputs that move the answer most.
- Solar panel degradation explained
Why solar panels make a little less power each year, what the research says about typical rates, how to read a performance warranty and how much wear changes payback.
- Do home solar batteries pay off?
When a battery adds real savings to a solar system and when it only adds cost, how to work out the most a battery is worth to you, and what the numbers leave out.
Frequently asked questions
- How long do solar panels take to pay for themselves?
- It depends on three things: how much you pay per kWh, how much sun your roof gets, and the installed price on your quote. Higher electricity prices and sunnier locations shorten payback; a higher price per watt lengthens it. Enter your own figures above to get an estimate for your home.
- What electricity price should I enter?
- Use what you pay per kWh for energy and delivery, from a recent bill. Leave out fixed monthly customer charges, because you still pay those with solar. The starting value is the US residential average from the Energy Information Administration for January to August 2026.
- How do I work out the price per watt?
- Divide the total installed price on your quote by the system size in watts. For example, a quote for a 7 kW system is for 7,000 watts. You can also choose “Total quoted price” and the calculator does the division for you.
- Does the calculator include net metering?
- No. Electricity you send to the grid is valued at zero, so the estimate does not depend on your utility’s export rules. If your utility pays for or offsets exported power, your payback will be shorter than shown.
- My city is not listed. What should I do?
- Choose “Somewhere else” and enter your own yield. Run PVWatts for your address with a 1 kW system and enter the annual AC output in kWh. The listed cities use the same tool with a roof-mounted, south-facing array at a 30° tilt and 14% system losses.
- Should I add a battery?
- In this calculator a battery only adds savings when your home cannot use all of its solar output as it is made. Set “Used directly at home” below 100% and add the battery’s capacity, price and round-trip efficiency to compare. Our guide on home batteries walks through when they pay off.