Construction & Architecture / Solar & Energy
Solar Panel ROI Calculator
Solar System Details
Current Electricity
Incentives
30% through 2032
How to Use This Calculator
Calculate the return on investment for solar panels over 25 years, including federal tax credits, state incentives, and rising electricity rates.
Key Factors:
- 30% federal tax credit available through 2032
- Electricity rates typically increase 3-5% annually
- Solar panels are warrantied for 25+ years
- Inverter may need replacement around year 15 ($1,500-$3,000)
Use this solar panel roi calculator to compute solar & energy results from your inputs.
Formula
Annual production (kWh) = System size × Sun hours × 365 × 0.75 (derate factor) Annual savings = Annual production × Electricity rate Year N savings = Annual savings × (1 + Rate increase)^N Net cost = System cost - (System cost × Tax credit %) - State incentive Cumulative savings = Σ(Year N savings - Maintenance) Payback period = When cumulative savings = Net cost 25-year ROI = (Total savings - Net cost) / Net cost × 100