Solar Payback Calculator
Estimate how long a solar investment may take to recover its upfront cost and project long-term savings using your own electricity rates and system assumptions.
Solar payback example
Example: $18,000 system cost, $3,000 incentives, 12,000 kWh annual production, 100% valued at $0.18/kWh, and $100 annual maintenance.
Why self-consumption and export rates matter
Solar electricity used directly on-site can offset electricity purchased at the retail rate. Electricity exported to the grid may receive a different credit, depending on the utility, tariff and jurisdiction. Enter the rates that apply to your situation instead of assuming exported energy has the same value as self-consumed energy.
Solar payback FAQ
What is simple payback?
Simple payback is the net upfront cost divided by first-year net savings. It is easy to understand but does not by itself account for financing, taxes or the time value of money.
What annual degradation should I use?
Use the long-term degradation assumption supplied by the panel manufacturer or project model. The default here is only a planning assumption.
Should I include rebates and tax incentives?
Only include incentives you reasonably expect to receive and enter them consistently with how you are treating taxes and system cost.