Solar ROI Calculator
See how much your solar investment can earn over 25 years. Adjust the inputs to match your quote.
Typical range: 1,000–1,800 depending on location
Modern panels degrade 0.3–0.7% per year
Historical average: 2–3% per year
Federal ITC is 30% of gross cost. Add any state/utility rebates.
Your Solar ROI Summary
Gross Cost
$16,800
After Incentives
$10,800
Year 1 Savings
$1,008
25-Year Savings
$31,035
25-Year ROI
187%
Payback Period
10 years
Year-by-Year Savings
| Year | Production (kWh) | Rate ($/kWh) | Savings | Cumulative |
|---|---|---|---|---|
| 1 | 8,400 | $0.120 | $1,008 | $1,008 |
| 2 | 8,358 | $0.123 | $1,025 | $2,033 |
| 3 | 8,316 | $0.125 | $1,042 | $3,075 |
| 4 | 8,275 | $0.128 | $1,060 | $4,135 |
| 5 | 8,233 | $0.131 | $1,078 | $5,213 |
| 6 | 8,192 | $0.134 | $1,096 | $6,309 |
| 7 | 8,151 | $0.137 | $1,115 | $7,424 |
| 8 | 8,110 | $0.140 | $1,133 | $8,557 |
| 9 | 8,070 | $0.143 | $1,153 | $9,710 |
| 10 | 8,029 | $0.146 | $1,172 | $10,882 |
Showing years 1–10. Panels typically last 25+ years.
How Solar ROI Works
Solar panels are a long-term investment. The ROI calculation compares your total 25-year electricity savings against the net cost of installation after incentives. Key factors that drive ROI include your local electricity rates, the amount of sunlight your location receives, and available tax credits or rebates.
The federal Investment Tax Credit (ITC) currently covers 30% of installation costs. Many states and utilities offer additional incentives that can reduce your net cost by thousands of dollars. Combined with net metering programs that credit you for excess energy sent to the grid, solar panels can deliver an ROI of 15–35% over their 25-year lifespan in most markets.
Your system's ROI is also affected by panel orientation and tilt. Panels installed at the optimal angle can produce 10–40% more energy than flat-mounted panels, directly improving your return. Use the Tilt Calculatorto find the best angle for your location or the Production Calculatorto estimate your annual energy yield.
Related Calculators
Solar Tilt Calculator
Find the optimal tilt angle for your panels
Solar Azimuth Calculator
Find the optimal compass direction for your panels
Solar Payback Calculator
See how fast your solar panels pay for themselves
Solar Production Calculator
Estimate how much energy your system will generate
Get precise numbers with SolarAlign
Use the SolarAlign app to measure your roof's exact orientation and tilt for a personalized production estimate.Learn more →