Solar Panel ROI Calculator
| Year | Annual savings | Cumulative | Net benefit |
|---|---|---|---|
| Year 1 | $1,680 | $1,680 | $-22,320 |
| Year 5 | $1,855 | $8,836 | $-15,164 |
| Year 10 | $2,098 | $18,828 | $-5,172 |
| Year 15 | $2,372 | $30,125 | +$6,125 |
| Year 20 | $2,681 | $42,897 | +$18,897 |
| Year 25 | $3,031 | $57,337 | +$33,337 |
| Year 30 | $3,427 | $73,663 | +$49,663 |
Solar return on investment depends on installed cost, confirmed incentives, actual production, the value of each kWh, financing, and ongoing costs. The figures here are planning estimates, not quotes or guaranteed savings. Current 2026 calculations do not include a federal Residential Clean Energy Credit.
Federal Section 25D effective date. IRS guidance states that the 30% Residential Clean Energy Credit applied to qualifying installations from 2022 through December 31, 2025 and is not available for property placed in service after that date. State, local, and utility programs are separate and vary by location; this calculator assumes zero unless you enter a confirmed amount.
Electricity value is an estimate. Regional rate presets and sun-hour values are illustrative assumptions, not current utility quotes or site studies. The model values production up to annual usage at the selected retail rate and assigns no value to production above usage. Actual tariffs, time-of-use pricing, fixed charges, export compensation, shading, orientation, and weather can materially change savings.
Net metering and excess production. Net metering policies allow you to send excess solar production back to the grid in exchange for bill credits. Full retail net metering — where you receive the same rate for exported power that you pay for imported power — provides the best return. Some utilities now offer reduced rates for exported power, which reduces the value of oversizing your system.
Cash vs. financing. Cash analysis uses net installed cost after only the incentives you enter. Financing analysis uses total scheduled principal and interest. The model does not include lender fees, maintenance, inverter or battery replacement, insurance, taxes, opportunity cost, or lease/PPA terms.
Getting accurate quotes. Compare multiple current installer quotes using total cash price, cost per watt, equipment, modeled production, financing fees, warranties, maintenance, and replacement assumptions. Verify every warranty and production guarantee against the specific manufacturer and installer documents.
Last verified: August 28, 2026.