Solar ROI Calculator
Calculate the return on investment for a solar panel system over its lifetime including tax credits and electricity savings.
USD
%
USD
years
Total ROI
221.4 %
Annual ROI8.9 %
Lifetime Net Profit31,000 USD
Effective Cost per kWh0.047 USD/kWh
Total ROI vs System Lifespan
How to Calculate Solar ROI
Solar ROI measures the total financial return over the system lifetime.
Formula
Net Cost = System Cost * (1 - Tax Credit %)
Lifetime Savings = Annual Savings * Lifespan
ROI = (Lifetime Savings - Net Cost) / Net Cost * 100
Most solar panels are warranted for 25 years and can produce electricity for 30+ years with gradual degradation.
Example Calculation
A $20,000 system with 30% tax credit, $1,800/year savings over 25 years.
- 01Net cost: $20,000 * 0.70 = $14,000
- 02Lifetime savings: $1,800 * 25 = $45,000
- 03Net profit: $45,000 - $14,000 = $31,000
- 04Total ROI: $31,000 / $14,000 * 100 = 221.4%
- 05Annual ROI: 221.4 / 25 = 8.9%/year