Solar ROI Calculator
Calculate the return on investment for a solar panel system over its lifetime including tax credits and electricity savings.
Total ROI
221.4 %
Total ROI vs System Lifespan
Formule
## 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.
Exemple Résolu
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
Questions Fréquentes
What is a good ROI for solar?
Solar systems typically deliver 150-300% total ROI over 25 years, equating to 6-12% annually. This compares favorably to many other investments.
Does this account for maintenance costs?
Minimal maintenance is needed for solar. Budget $100-200/year for cleaning and monitoring. Inverter replacement ($1,000-2,000) may be needed once during the panel lifetime.
How does home value increase factor in?
Studies show solar adds $15,000-25,000 to home value. If you sell before the system pays back, the home value increase typically covers your net cost.