Solar Panel Payback Period Calculator
Find out how long solar panels take to pay for themselves. Enter the installed cost, yearly production in kWh, your electricity rate and any incentives or maintenance to see the simple payback period in years.
How to find solar payback period
- Enter the total installed system cost.
- Enter the energy the array produces per year in kWh.
- Enter your electricity rate per kWh that the solar offsets.
- Add any incentives and yearly maintenance, then read the payback in years.
Examples
$15000 system, 9000 kWh/yr, $0.15/kWh
$15000 cost, 9000 kWh/year, $0.15/kWh, no incentives
$1350 saved per year, payback in about 11.1 years
Frequently asked questions
What is a solar payback period?
It is the number of years of energy savings needed to recover the net cost of the system. After that point the electricity the panels make is effectively free.
Is this a simple or discounted payback?
It is a simple payback. It does not adjust for rising electricity prices, inflation or panel output that fades slowly over time, so treat it as a baseline.
How do incentives change the result?
Rebates and tax credits lower the net cost, so the same yearly savings recover it faster. A larger incentive means a shorter payback.
What if it never pays back?
If yearly maintenance is as large as the savings, there is nothing left to recover the cost. The tool flags this instead of showing a misleading number.
Where do I get my yearly production figure?
Use an installer's estimate or a solar panel calculator that multiplies system size by local peak sun hours and a performance ratio.
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