Solar Panel Payback Calculator
Calculate solar panel payback period, ROI and lifetime savings for your home.
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Frequently Asked Questions
How long does it take solar panels to pay for themselves?
Average solar payback period in the US is 6-10 years. With the 30% federal tax credit and average electricity savings, a $25,000 system net cost of $17,500 at $1,800/year in savings pays back in about 9-10 years. Sunny states (California, Arizona, Texas, Florida) have shorter payback periods due to more sunlight hours and higher electricity rates.
What is the federal solar tax credit in 2026?
The federal Investment Tax Credit (ITC) for residential solar is 30% of total system cost through 2032, then steps down to 26% in 2033 and 22% in 2034. This is a dollar-for-dollar reduction in federal income tax owed. On a $25,000 system, the credit is $7,500. You must have sufficient tax liability to use the full credit — unused credit carries forward to future years.
Does solar increase home value?
Studies show solar panels increase home value by 3-4% on average. A Zillow study found homes with solar sold for 4.1% more. On a $400,000 home that is a $16,400 increase in value. Combined with electricity savings and the federal tax credit, solar is one of the highest-ROI home improvements available. Most states also exempt solar from property tax reassessment.