Solar Payback Calculator
Calculate how long it takes for a solar panel system to pay for itself through electricity savings.
USD
%
USD
%
Simple Payback Period
7.8 years
Net System Cost14,000 USD
25-Year Savings31,000 USD
Tax Credit Amount6,000 USD
Simple Payback Period vs Total System Cost
How to Calculate Solar Payback Period
The solar payback period tells you how many years until your solar investment pays for itself.
Formula
Net Cost = System Cost * (1 - Tax Credit %)
Payback Period = Net Cost / Annual Savings
The US federal Investment Tax Credit (ITC) is currently 30% through 2032, significantly reducing the effective cost.
Example Calculation
A $20,000 solar system with 30% tax credit saving $1,800/year on electricity.
- 01Tax credit: $20,000 * 30% = $6,000
- 02Net cost: $20,000 - $6,000 = $14,000
- 03Simple payback: $14,000 / $1,800 = 7.8 years
- 0425-year savings: $1,800 * 25 - $14,000 = $31,000