Solar Panel Savings Calculator

Inputs

Your household's yearly electricity usage in kilowatt-hours (kWh)

Total capacity of your solar panel system in kilowatts (kW)

Average peak sun hours per day in your location (typically 3-6 hours)

Your average cost per kilowatt-hour

Expected annual increase in electricity rates (typically 2-4%)

Complete cost of solar panel system installation

Available federal tax credit (currently 30% in the US)

Expected annual loss in system efficiency (typically 0.5-0.8%)

Number of years to calculate savings and ROI

Results

Year 1 Energy Production
Year 1 Savings
First year electricity bill reduction
Total 25-Year Savings
Cumulative savings over analysis period
Net Installation Cost
Payback Period
Years until total savings equal installation cost
Return on Investment
Formula
Annual Production (Year 1) = System Size (kW) × Daily Sunlight Hours × 365; Annual Savings = Annual Production × Electricity Rate; Net Cost = Installation Cost × (1 - Tax Credit %); Payback Period calculated by cumulative year-over-year savings with rate increases and degradation
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