Solar Savings Calculator

Estimate the installed cost of going solar, your monthly savings, payback period, and 25-year return. The 30% federal tax credit expired after 2025, so nothing is netted out of the cost below.

System Size(typical home: 6–10 kW)

Cost Per Watt(installed, before incentives — often $2.50–$3.50)

Current Monthly Electric Bill

Bill Offset(share of your bill the system covers)

Installed System Cost

$24,000

Pays for itself in about 12.3 years

System Cost

System Cost (8 kW × $3/W)	$24,000
Federal Tax Credit (§25D)	Expired after 2025
What You Pay	$24,000

Savings & Payback

Estimated Monthly Savings	$162
Estimated Annual Savings	$1,944
Simple Payback Period	12.3 years
Net 25-Year Savings	$24,600

How Solar Savings Add Up

The math behind solar is simple at its core: you pay an upfront cost, and then your panels chip away at your electric bill for 25+ years. The payback period is just how long the bill savings take to repay what you paid — after that, the electricity is essentially free. Until recently the federal government covered 30% of the upfront cost through the Residential Clean Energy Credit, which shortened that payback considerably. It no longer does, so a 2026 system has to earn back the full installed price.

Two things move the needle most: how much your system costs per watt (shop multiple installers) and how much of your bill it actually offsets, which depends on your roof, sun exposure, and local net-metering rules. This estimate keeps savings flat for simplicity, so it's actually conservative — utility rates have historically risen over time, which would shorten your real payback.

Learn more in our solar tax credit guide, see real pricing in the solar panel cost guide, stack more rebates with energy efficiency tax credits, and check state and utility programs on the solar incentives page. You can also model utility savings with our energy savings calculator.

The 30% federal solar credit no longer applies. The Residential Clean Energy Credit (IRC §25D) was terminated early by Public Law 119-21, enacted July 4, 2025, and cannot be claimed for expenditures made after December 31, 2025. An expenditure counts as made when the original installation is completed, so a system finished in 2026 does not qualify. A system completed in 2025 or earlier may still be claimed on that year's return with IRS Form 5695. See the IRS FAQs on P.L. 119-21 and Home Energy Tax Credits.

This is an estimate, not tax or financial advice. Actual production, net-metering terms, state and utility incentives, and rate changes will affect your real return. Confirm eligibility with a tax professional.

Frequently Asked Questions

Can I still claim the 30% federal solar tax credit?

Not for a system you finish in 2026. The Residential Clean Energy Credit (§25D) used to return 30% of your installed cost, but Public Law 119-21 ended it for expenditures made after December 31, 2025. Because the expenditure is treated as made when installation is completed, a 2026 completion date gets nothing — even if you signed the contract in 2025. If your system was completed in 2025 or earlier, you can still claim it on that year's return.

What size solar system do I need?

Most homes land in the 6–10 kW range. The right size depends on your annual electricity use, roof space, and sun exposure. A good installer sizes the system to offset most or all of your usage without overbuilding.

What's a typical solar payback period?

Payback commonly ran 7–12 years while the 30% federal credit was available. Without it, expect a longer horizon on a 2026 system — the exact figure depends on system cost, electricity rates, state and utility incentives, and how much of the bill is offset. After payback, the remaining years of production are essentially free power.

Does this include batteries or net metering?

No. This is a simplified panels-only estimate. Battery storage adds cost — and it lost the same §25D credit the panels did, so it is no longer 30% off either. Net-metering rules vary widely by utility, which affects how much each kilowatt-hour is actually worth to you.

Will solar panels increase my home value?

Owned solar systems (not leased) generally add value, since buyers inherit lower electric bills. Leased systems can complicate a sale because the buyer has to assume the lease. Local market demand and the system's age matter too.