Solar ROI Calculator

Estimate your solar payback period and long-term return on investment. Compare purchasing with incentives, purchasing without incentives, and lease/PPA options to find the best financial path for your home solar installation.

System Details

System Cost ($)

System Size (kW)

Peak Sun Hours

Annual Degradation (%)

Current Electric Bill

Monthly Bill ($)

Rate ($/kWh)

Annual Rate Increase (%)

Incentives

Federal Tax Credit (%)

State/Local Incentive ($)

Lease / PPA Comparison

Monthly Lease Payment ($)

Annual Production

14,600 kWh

8 kW system

Simple Payback

9 years

Net cost: $17,500.00

25-Year ROI

265%

$46,409.10 net benefit

Federal Tax Credit

$7,500.00

30% of system cost

Year-by-Year Cumulative Savings (Purchase w/ Incentives)

Purchase Option	Quantity	Est. Cost
Year 1	$1,800.00	-$15,700.00
Year 2	$1,854.00	-$13,846.00
Year 3	$1,909.62	-$11,936.38
Year 4	$1,966.91	-$9,969.47
Year 5	$2,025.92	-$7,943.56
Year 6	$2,086.69	-$5,856.86
Year 7	$2,149.29	-$3,707.57
Year 8	$2,213.77	-$1,493.80
Year 9Best value	$2,280.19	$786.39
Year 10	$2,348.59	$3,134.98

Best option: Purchase (w/ Incentives)Purchasing with incentives yields the highest 25-year net benefit of $46,409.10. Your estimated payback period is 9 years.

This is a simplified estimate. Actual solar production depends on roof orientation, shading, weather, and local utility policies (net metering, time-of-use rates). Federal tax credit eligibility depends on your tax situation. Always get multiple installer quotes and consult a tax professional.