Simple PV Payback Analysis

Already have solar? Find out how long until your system pays for itself.

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Your Information

What state are you in?

Average rate: $0.165/kWh

How much did you spend on electricity per year before getting solar?

$/year

Estimated consumption: 10,922 kWh/year

Have you added an electric vehicle that wasn't included in your pre-solar bill?

How much did your solar system cost? (total before incentives)

How much of the Federal Tax Credit did you claim?

Default: 30% of system cost ($5,400). Enter 0 if you didn't claim it.

How much do you spend on electricity per year now?

$/year

Enter a negative number if you receive net metering credits (e.g., -$200)

Simple Payback Period

7.9 years

Good payback period for residential solar.

What you would pay without solar

$1,800/yr

What you pay now

$200/yr

Annual Savings

$1,600/yr

Net System Cost

$12,600

$18,000 - $5,400 credit

Total Savings

$54,652

Net Profit

$42,052

Return on Investment

334%

* Assumes 2.5% annual electricity rate increase and 25-year system life

We calculate your avoided cost: what you would pay without solar (including EV if added) minus what you actually pay now.
Simple payback = your net system cost ÷ annual savings.
Long-term projections assume electricity rates increase 2.5% per year (historical average).
This is a simplified analysis—actual results depend on net metering policies, rate structures, and system performance.

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