Solar Savings Calculator
Investing in solar panels can dramatically reduce electricity costs while helping the environment. Our comprehensive solar savings calculator helps determine potential savings from installing solar panels on your home. Calculate annual energy production based on system size and sun exposure, estimate monthly and yearly electricity bill savings, determine net installation costs after federal tax credits and state incentives, find your payback period and return on investment, and understand your environmental impact through CO2 emissions reduction.
Your average monthly electricity bill
U.S. average: $0.13/kWh
Typical home: 5-8 kW
Average: $2.50-$3.50 per watt
Current federal credit: 30%
Additional state or local rebates
U.S. range: 3.5-6.5 hours
How much can I save with solar panels?
Solar panel savings vary significantly based on location, electricity rates, system size, and sun exposure. The average homeowner saves $1,000-$2,000 annually on electricity bills. Over a 25-year system lifespan, total savings typically range from $25,000 to $50,000. High electricity rate areas like California, Hawaii, and the Northeast see greater savings. With federal tax credits and state incentives, many systems pay for themselves within 6-10 years, providing 15+ years of free electricity.
What size solar system do I need for my home?
The average home needs a 5-8 kW solar system to cover electricity usage. To determine your size: divide annual kWh usage (found on electric bills) by 1,200-1,500 to get kW needed. A home using 10,000 kWh annually needs approximately 6-8 kW. System size also depends on available roof space, sun exposure, and energy goals. Most panels are 300-400 watts each, so a 6 kW system requires 15-20 panels.
How much do solar panels cost to install?
Solar panel installation costs average $2.50-$3.50 per watt before incentives. A typical 6 kW residential system costs $15,000-$21,000, while an 8 kW system runs $20,000-$28,000. Costs include panels, inverters, mounting equipment, wiring, permits, and labor. After the 30% federal tax credit, net costs drop to $10,500-$19,600. Premium equipment, complex installations, or difficult roof access increases costs. Prices have decreased 70% since 2010 and continue falling.
What is the federal solar tax credit?
The federal solar Investment Tax Credit (ITC) provides a 30% tax credit on solar installation costs through 2032, then decreases to 26% in 2033 and 22% in 2034. For an $18,000 system, you receive a $5,400 tax credit, reducing net cost to $12,600. This is a dollar-for-dollar reduction in federal taxes owed. You must have sufficient tax liability to claim the full credit, though unused portions can carry forward. The credit applies to both primary and secondary residences.
How long do solar panels last?
Solar panels typically last 25-30 years with minimal performance degradation. Most manufacturers guarantee 80-90% output after 25 years, with panels degrading approximately 0.5% annually. Inverters last 10-15 years and usually need one replacement during the system's life ($1,500-$3,000). With proper maintenance, panels can produce electricity for 35-40 years. Modern panels are highly durable, weathering hail, wind, and snow.