Enter Your System Details
Before any incentives or credits
Auto-calculated from system cost
Check your state's solar programs
Contact your utility for details
From your savings calculator result
US avg ~2–3% per year
Your Payback Results
—
Payback Period
—
Net Cost After Incentives
—
25-Year Net Profit
—
25-Year ROI
Break-even progress (25-year horizon)
Cumulative Savings vs. Net Cost (by year)
Full 25-Year Breakdown
| Item | Value |
|---|
Payback Period FAQ
What is a good solar payback period?
The national average payback period is 6–12 years. States with high electricity rates and good solar incentives (California, Massachusetts, New York) often see 5–8 year paybacks. States with very low electricity rates may see 10–15 years.
How does the federal tax credit affect payback?
The 30% federal Investment Tax Credit (ITC) directly reduces your net system cost. On a $28,000 system that's $8,400 back at tax time — shaving 2–4 years off a typical payback period. The credit applies to the tax year your system is installed.
Why do utility rate increases matter?
When utility rates rise, the value of your solar savings grows proportionally. At 2.5%/yr your electric bill would nearly double in 28 years. Solar locks in free power, so each year of rate increases accelerates your payback.
Does solar panel degradation affect payback?
Quality panels degrade about 0.5% per year — your Year 25 output is ~88% of Year 1. This is minor and already factored into most installers' savings projections. Our savings calculator uses the derate factor for production, so your annual savings figure is realistic.
What about inverter replacement costs?
String inverters typically need replacement at year 10–15 ($1,000–$2,500). Microinverters and power optimizers last 25+ years. For simplicity our calculator doesn't include maintenance costs — factor in ~$500–$1,000 every decade for realistic projections.
Run More Calculations