Solar Energy Savings Calculator

Your savings are calculated by comparing what you currently pay for grid electricity against the cost of generating your own solar power. We factor in your monthly bill, local electricity rates, roof size, panel efficiency, sun hours, system cost, and the federal tax credit to produce a personalized estimate.

The federal Investment Tax Credit (ITC) lets you deduct a percentage of your solar installation cost directly from your federal taxes. As of 2024, the credit is 30% and applies to both residential and commercial systems. It is set to remain at 30% through 2032 before gradually stepping down.

The typical solar payback period in the US is 6–12 years, depending on your electricity rate, local sun hours, system size, and available incentives. After payback, the electricity your panels generate is essentially free for the remaining 15+ years of the system's life.

Yes. Your available roof area determines how many panels you can install and therefore how much of your electricity demand you can offset. A typical solar panel covers about 17–20 square feet and produces around 300–400 watts. More usable, south-facing roof space generally means a larger system and greater savings.

Peak sun hours measure the number of hours per day when sunlight is strong enough for effective solar generation (about 1,000 W/m²). Locations like the US Southwest average 5–7 peak sun hours, while the Northeast averages 3–4. More peak sun hours mean more electricity generated and higher savings.

Absolutely. Since solar locks in your energy cost, every time your utility raises rates you avoid that increase. Historically, US electricity rates have risen about 2–4% per year. Over 25 years, even modest rate increases significantly boost your total lifetime savings from going solar.

Yes, but very slowly. Most modern panels degrade at roughly 0.5% per year, meaning a panel producing 400 W today will produce around 395 W next year. Quality panels come with 25-year performance warranties guaranteeing at least 80–85% of original output at the end of their rated life.

Many states, cities, and utilities offer additional rebates, net metering programs, sales tax exemptions, and property tax exemptions for solar installations. These can meaningfully reduce your net cost and shorten your payback period beyond what this calculator estimates using the federal credit alone.