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Solar payback calculator

Production per kW loads from the NLR PVWatts model for a large city in your state. Enter the price from your installer's quote for a real answer.

kW
$/W

From your quote: total price ÷ system watts. Quotes vary widely by state and installer.

$

State or utility rebates only. The 30% federal credit for homeowner-owned systems (Section 25D) ended on December 31, 2025.

kWh/kW

Loads the NLR PVWatts estimate for your state. Your installer's estimate for your roof is better.

¢/kWh
% of retail

100% if every kWh offsets a full retail kWh. Lower it if your utility credits exports at a lower rate.

%
%
Your estimateRates: EIA, August 2026
System cost after rebates
$21,000
Output in year one
9,100 kWh
Savings in year one
$1,653

Payback11.2 years

Savings over 25 years
$56,338
Net of the system cost
$35,338

No federal tax credit is included: the 30% residential credit (Section 25D) ended on December 31, 2025.

How it is calculated

System cost = size × 1,000 × price per watt − rebates. Year-one output = size × yearly output per kW.

Each year's savings = output × electricity price × value of each solar kWh. Prices rise by the yearly increase you set and output falls by the panel loss. Payback is the first year when total savings reach the system cost.

Worked example

With the starting values shown in the form (U.S. average price of 18.16¢ per kWh), the result is 11.2 years (payback). Change any number and the estimate updates as you type.

Tips

Questions

Is the 30% federal solar tax credit still available in 2026?
Not for systems you buy. The residential clean energy credit (Section 25D) ended on December 31, 2025. Companies that lease systems or sell power under a PPA can still claim a business credit, which may lower those offers.
Where does the production estimate come from?
From PVWatts, the solar model run by the National Laboratory of the Rockies (formerly NREL), for a fixed roof-mounted system facing south at a 20° tilt with 14% system losses.

Prices by state

Pick a state in the form above, or open its page for the full picture: price history, average bill and what everyday appliances cost there.

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