Solar Panel Savings Calculator
Estimate the solar system size your home needs, what it costs after the federal tax credit, how much you'd save each year, and how fast it pays for itself. Start with your monthly electric bill.
See what solar actually costs on your roof
Get free, no-obligation quotes from vetted local installers and compare real prices. Takes 2 minutes.
How solar panel savings are calculated
This calculator works backward from your electricity use in four steps:
1. System size (kW) = (annual kWh × offset%) ÷ production per kW
2. Gross cost = size × 1000 × $ per watt
3. Net cost = gross × (1 − tax credit%)
4. Payback = net cost ÷ annual bill savings
Example: a home using 900 kWh/month uses 10,800 kWh/year. To offset 100% in an average-sun area (1,400 kWh/kW), you'd need about 7.7 kW of panels. At $2.75/W that's ~$21,200 gross, or about $14,850 after a 30% credit. At $0.16/kWh the system offsets roughly $1,730/year, for a payback around 8.6 years — and 25-year net savings well into five figures.
What changes your payback period
Three levers dominate. Electricity rate: the more you pay per kWh, the faster solar pays off — a home at $0.30/kWh pays back roughly twice as fast as one at $0.16. Sunlight: the Southwest produces far more per panel than the cloudy North. Install cost: shop multiple installers; prices per watt vary a lot. Net-metering rules in your state also matter — full-retail net metering makes solar considerably more valuable than partial credit.
Is solar worth it for your home?
Solar tends to pay off best for homes with high electricity bills, decent unshaded roof space, and higher local rates. If your bill is modest, efficiency upgrades may beat solar dollar-for-dollar — check what's driving your bill with the Electricity Bill Calculator and Appliance Running Cost Calculator first. If you also drive electric, pairing solar with home EV charging (see the EV Charging Cost Calculator) stacks the savings.
Frequently asked questions
Does this include battery storage?
No — this estimates a grid-tied system without a battery, which is the most common and lowest-cost setup. Adding a home battery increases cost and is usually about backup power rather than extra savings.
Why is my production-per-kW number so important?
It captures how much sun your location gets. A 1 kW system might make 1,600 kWh/year in Arizona but only 1,150 in the Pacific Northwest. Using a realistic local figure keeps the estimate honest.
Is the 30% tax credit guaranteed?
Tax-credit law changes over time and eligibility depends on your situation. Treat 30% as a planning assumption and confirm the current credit with a tax professional or the IRS before you buy.