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Solar Panel ROI Calculator

Calculate the return on investment for your solar panel installation over 25 years.

Annual Savings
$1,200
Payback Period (years)
12
25-Year Net Savings
$16,000
ROI (%)
114%

Solar Panel ROI Calculator: Calculate Your Investment Return

Solar panels are one of the best long-term investments for homeowners. With federal tax credits, declining installation costs, and rising electricity rates, the return on investment has never been better.

This calculator helps you estimate annual savings, payback period, and 25-year net return based on your system cost, energy production, local electricity rates, and available tax incentives.

The average residential solar system pays for itself in 6-10 years and generates 3-5x its cost in savings over 25 years. The federal Investment Tax Credit (ITC) currently offers a 30% credit on installation costs.

For related tools, see our solar savings calculator and solar battery calculator.

FAQ

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FAQ

What is a good ROI for solar panels?+
A typical solar ROI is 10-20% annually after the payback period, which is comparable to or better than stock market returns.
How long do solar panels last?+
Most solar panels have a 25-year warranty and can produce electricity for 30-40 years with gradual efficiency decline of about 0.5% per year.
Does the federal tax credit apply to batteries?+
Yes, the 30% ITC applies to solar battery storage systems installed with or after solar panels.
What affects solar panel ROI the most?+
Local electricity rates, sun hours, system cost, available incentives, and net metering policies have the biggest impact on ROI.

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