Solar Panel Savings Calculator

Year 1 annual savings are calculated as: monthly electricity bill × 12 months × solar offset percentage. For each subsequent year, savings grow by the annual electricity rate increase (compounding annually), which reflects the real-world trend of rising utility costs making solar more valuable over time. The payback period is the calendar year in which cumulative savings first exceed the system cost. The 25-year net profit is total cumulative savings minus the upfront system cost. This gives a conservative long-term return estimate since solar panels typically remain productive for 30 or more years. Entering your system cost after incentives — such as the US federal 30% Investment Tax Credit — ensures the payback period and net profit reflect the actual out-of-pocket investment rather than the gross installation price.