How much will
solar save you?
Enter your electricity usage, roof specs, and location. Get a full 25-year savings forecast, payback period, and CO₂ offset — calculated to your address.
Estimates only. Actual savings depend on shading, roof orientation, local utility rates, net metering policy, and installation specifics. Consult a certified solar installer for a site assessment.
“Note: This calculator provides estimated solar savings, payback periods, and tax incentives for educational and planning purposes only. It does not constitute official financial, tax, or certified installer advice. Actual costs and 30% Federal ITC eligibility will vary based on your specific home, utility rates, and tax situation. Always consult with a licensed solar professional and tax advisor.”
How to Use This Solar Panel Calculator
Enter your average monthly electricity bill, your state (for sunlight hours and utility rates), and your home’s roof size. Our calculator estimates your recommended system size, upfront cost, federal and state incentives, monthly savings, payback period, and total 25-year savings.
Average Solar Savings by Monthly Electricity Bill
| Monthly Bill | System Size | Est. System Cost | After 30% Tax Credit | Annual Savings | Payback Period |
|---|---|---|---|---|---|
| $100/month | 6 kW | $18,000 | $12,600 | $1,200 | ~10.5 years |
| $150/month | 9 kW | $27,000 | $18,900 | $1,800 | ~10.5 years |
| $200/month | 12 kW | $36,000 | $25,200 | $2,400 | ~10.5 years |
| $250/month | 15 kW | $45,000 | $31,500 | $3,000 | ~10.5 years |
2026 Federal Solar Tax Credit (ITC)
The Federal Investment Tax Credit (ITC) allows homeowners to deduct 30% of their total solar installation cost directly from their federal income taxes. This is not a deduction — it is a dollar-for-dollar credit.
| System Cost | 30% Federal Tax Credit | Net Cost After Credit |
|---|---|---|
| $15,000 | $4,500 | $10,500 |
| $20,000 | $6,000 | $14,000 |
| $25,000 | $7,500 | $17,500 |
| $30,000 | $9,000 | $21,000 |
| $40,000 | $12,000 | $28,000 |
The 30% ITC is available through 2032, then steps down to 26% in 2033, 22% in 2034, and expires for residential use in 2035. Installing before 2033 maximizes your incentive.
Solar Savings by US State (Annual Average)
| State | Avg. Electricity Rate | Annual Savings (12kW system) | Solar Rating |
|---|---|---|---|
| California | $0.25/kWh | $3,200 | Excellent ☀️☀️☀️ |
| Texas | $0.12/kWh | $2,100 | Very Good ☀️☀️ |
| Florida | $0.13/kWh | $2,300 | Excellent ☀️☀️☀️ |
| New York | $0.21/kWh | $2,400 | Good ☀️☀️ |
| Massachusetts | $0.22/kWh | $2,100 | Good ☀️☀️ |
| Arizona | $0.13/kWh | $2,800 | Excellent ☀️☀️☀️ |
| Illinois | $0.13/kWh | $1,600 | Moderate ☀️ |
Solar Installation Options Compared
| Option | Upfront Cost | Ownership | Incentives | Long-Term Savings |
|---|---|---|---|---|
| Cash purchase | $15K–$40K+ | You own it | Full tax credit | Highest (keep all savings) |
| Solar loan | $0 down | You own it | Full tax credit | High (own after payoff) |
| Solar lease | $0 down | Company owns | None for you | Moderate (locked-in rate) |
| Power Purchase Agreement (PPA) | $0 down | Company owns | None for you | Moderate (pay per kWh) |
Buying outright or with a solar loan gives you the most savings over time. Leasing and PPAs require no upfront investment but you don’t receive the tax credit and save less long-term.
25-Year Solar ROI Example
For a $150/month electricity bill homeowner in California who buys a 9 kW system:
| Item | Amount |
|---|---|
| System cost | $27,000 |
| 30% Federal Tax Credit | -$8,100 |
| State incentives (estimate) | -$2,000 |
| Net out-of-pocket cost | $16,900 |
| Annual electricity savings | $1,800 |
| Payback period | ~9.4 years |
| 25-year total savings | $45,000+ |
| 25-year net profit | ~$28,000 |
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Frequently Asked Questions
The average US home uses about 10,500 kWh per year and needs approximately 20–25 standard 400-watt solar panels (a 8–10 kW system). Your actual number depends on your energy usage, roof size and orientation, local sunlight hours, and panel efficiency. A solar installer will conduct a site assessment and give you an exact recommendation based on your specific home and energy consumption.
If your roof is within 5–7 years of needing replacement, it is usually worth replacing it before installing solar — removing and reinstalling panels later can cost $2,000–$4,000. Most solar panels have a 25–30 year warranty. Installing on a freshly replaced roof ensures both systems have aligned lifespans and avoids costly future disruptions.
Renters and condo owners have a few options: community solar programs allow you to subscribe to a share of a local solar farm and receive credits on your electricity bill without any installation. Some states have excellent community solar programs. Additionally, portable solar panels can power individual devices, though they won’t offset your full electricity bill.
Solar panels still generate electricity on cloudy days — typically at 10%–25% of their normal output. Germany, one of the cloudiest countries in Europe, is also one of the world’s top solar energy producers. What matters most is annual total sunlight hours, not daily peak conditions. In the US, even states like Washington and Oregon with significant cloud cover can still benefit significantly from solar.
Most solar panels carry a 25–30 year performance warranty and realistically last 30–35+ years. They degrade slowly — typically losing 0.5%–0.8% efficiency per year. After 25 years, a panel still produces approximately 80%–87% of its original output. The inverter (which converts DC to AC power) typically needs replacement after 10–15 years at a cost of $1,000–$2,500.