EV AND SOLAR

Solar Payback Calculator

Estimate simple solar payback from installed cost and annual value.

Transparent formula User-controlled electricity rate Calculations stay in your browser
The gross cost before any tax credits or rebates.
Enter the total dollar value of incentives (e.g., 30% of $20k = $6,000).
What your utility pays you or credits you for solar.
Utility interconnection fees or cleaning costs.

Optional Projections

Typically 0.5% per year.
Historical average is ~2-4% per year.

Your estimate will appear here

Enter your inputs and click calculate to see the cost and energy breakdown.

Methodology

Simple payback is calculated by dividing your Net Upfront Cost (Gross Cost minus Incentives) by your First Year Net Savings (Production Value minus Fees).

If you include degradation and price escalation, the calculator projects your cash flow over 25 years. The break-even point is the year your cumulative ROI turns positive.

CALCULATOR QUESTIONS

Frequently Asked Questions

Find answers about wattage, runtime, electricity rates, estimated costs, and the limitations of this calculator.

Review the calculator formula →

WHAT YOU WILL FIND HERE

  • Input and unit guidance
  • Formula and worked-example explanations
  • Reasons actual costs may differ
What are upfront incentives?
These include the federal solar tax credit (currently 30% in the US), as well as any state or local rebates. Be aware that tax credits only help if you have enough tax liability to offset.
How do I know my annual solar production?
Your solar installer will provide an estimate, usually in kWh/year. It depends on your system size, location, roof tilt, and shading. A typical 6 kW system might produce between 6,000 and 10,000 kWh annually depending on where you live.
What is panel degradation?
Solar panels slowly lose a tiny bit of their maximum power output over time. This is typically 0.5% to 0.7% per year for modern panels.
Looking for a question that is not covered here? Contact DataWisdom.