Free Solar Savings Calculator

Estimate annual savings and break-even time from installing a residential solar panel system.

USD
kW
hrs
USD/kWh

Annual Savings

$1,226

Monthly Savings$102
Break-Even (years)12.2 years
Annual Production8,760 kWh

Annual Savings vs Electricity Rate

How Solar Savings Are Calculated

Solar panels produce electricity based on system size, sunlight hours, and system efficiency (typically ~80%).

Formula

Daily Production = System kW x Sun Hours x 0.80 (efficiency)

Annual Savings = Daily Production x 365 x Electricity Rate

Break-Even = System Cost / Annual Savings

Example Calculation

6 kW system, 5 sun hours/day, $0.14/kWh, $15,000 cost after incentives.

  1. 01Daily production = 6 x 5 x 0.80 = 24 kWh
  2. 02Annual production = 24 x 365 = 8,760 kWh
  3. 03Annual savings = 8,760 x $0.14 = $1,226
  4. 04Break-even = $15,000 / $1,226 = 12.2 years

Frequently Asked Questions

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