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WattBills.com

Solar Panel Payback Calculator

Estimate system cost after credit, yearly savings, and payback year.

Inputs

Inputs and assumptions

System size

Cost per watt

Federal credit rate you qualify for.

Annual production per kW

Output lost each year; 0.5% is typical.

Rate

Annual rate increase

Set 0 to model a cash purchase.

Loan term

Inverter replacement (~yr 12)

Result

Loan payment (if financed)
$95.28
Year-1 savings per month
$138.83
25-year net benefit
$41,424.00
Net cost after credit
$13,720.00
Simple payback
8.2 yrs
First-year savings
$1,666.00
Screening tool. Verify your utility tariff and equipment specs before deciding.

Frequently asked questions

How is solar payback calculated?

Net system cost after credits divided by first-year bill savings, adjusted for panel degradation near 0.5 percent and rate inflation.

What is net metering?

Surplus daytime generation earns credits that offset nighttime imports. Weaker export rates lengthen payback by years.

What system size do I need?

Divide annual kWh by local sun hours times 365. Most US homes land between 5 and 10 kW.

Do panels degrade?

About 0.5 percent per year. Warranties typically guarantee 80 to 90 percent output at year 25.

What incentives apply?

The federal tax credit plus state rebates and SRECs cut net cost. Enter your post-incentive price for an honest payback.

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