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Solar ROI Estimator

Calculate your solar system's payback period, lifetime savings, and return on investment based on local electricity rates and incentives.

System Details

Before incentives

$3.13/watt

Quick system presets:

Location & Electricity Rates

Historical average ~3%/year

Estimated Annual Production9,600 kWh

Based on 1200 kWh/kW for your region

Tax Credits & Incentives

ITC under Inflation Reduction Act

Check DSIRE for local incentives

Net System Cost (after incentives)$17,500

$2.19/watt after incentives

Results

Enter your system details to see ROI

Understanding Solar ROI

Federal Tax Credit (ITC)

The Investment Tax Credit allows you to deduct 30% of solar installation costs from federal taxes through 2032. It steps down to 26% in 2033 and 22% in 2034.

Panel Degradation

Solar panels typically degrade 0.3-0.5% per year. Quality panels are warranted to produce at least 80% of rated output after 25 years.

Electricity Rate Trends

US electricity rates have historically increased 2-3% annually. Higher rate increases improve solar ROI as your locked-in savings grow over time.

Net Metering

This calculator assumes full retail credit for excess production. Check your utility's net metering policy, as some offer reduced credits.

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