Solar Payback Calculator
Work out how long a solar system takes to pay for itself from its cost, incentives, production and electricity rate, plus lifetime savings and ROI. Calculates in your browser.
Payback period
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Show the math
Payback is the net cost divided by the yearly bill saving:
payback = (cost − incentives) ÷ (annual kWh × rate)
This is a simple payback, it ignores rate inflation, panel degradation and the time value of money, so real payback is usually a little faster. All math runs in your browser.
What this does
A solar payback calculator works out how many years a system takes to pay for itself from its net cost, yearly production, and electricity rate, plus lifetime savings and ROI.
How to use it
- Enter the system cost and incentives.
- Enter annual production in kWh.
- Enter your electricity rate.
- Read the payback years and ROI.
How it works
This is a simple payback that ignores rate inflation, panel degradation, and the time value of money, so real payback is usually a little faster.
payback = net cost ÷ (annual kWh × rate)
Understanding your result
This is a simple payback that ignores rising electricity rates, slow panel degradation, and the time value of money, so the real break-even is usually a little sooner because grid prices climb. The single biggest driver is your electricity rate: the more you pay the grid, the faster solar pays back, and every year after that runs close to free power.
Example
A $15,000 net system saving $1,800 a year pays back in about 8 years.
Last updated .
Frequently asked questions
How is solar payback calculated?
Divide the net cost (price minus incentives) by your annual bill savings (production × electricity rate). The result is the simple payback in years.
Does this include rate inflation?
No — it is a simple payback that ignores rate rises, panel degradation and the time value of money, so real payback is usually a little faster.
Is my data stored?
No. Everything is calculated locally in your browser.
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