How much can I save with solar panels?

Savings depend on your electricity use, local utility rate and sunlight. Homeowners who offset most of their bill often save $15,000–$40,000 over 25 years after the system pays for itself. Use the calculator to estimate your case.

Does this include the federal tax credit?

Yes. The calculator applies the 30% federal Residential Clean Energy Credit (ITC) to the net cost. State and utility incentives are not included and would improve payback further.

Solar Savings Calculator — Estimate Cost & Payback

Solar Savings Calculator

Enter your average monthly electric bill and state to estimate how much a home solar system would cost, how fast it pays back, and your savings over 25 years.

Average monthly electric bill$Your state

Assumes $3.00/W installed and the 30% federal tax credit. Estimates only.

System size

7.7 kW

~20 panels

Est. gross cost

$23,169

before incentives

Federal tax credit

- $6,951

30% ITC

Net cost

$16,218

after credit

Year-1 savings

$1,800

Payback

9 yrs

25-year net savings

$45,146

after system cost, with rate escalation

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How the solar savings estimate works

The calculator sizes a system to offset your annual electricity use based on your state's average sun hours, then applies a typical installed cost of about $3.00 per watt. It subtracts the 30% federal tax credit to get your net cost, and projects savings forward assuming utility rates rise around 3% per year and panels degrade slightly over time.

What affects your actual savings

Your utility's electricity rate and rate structure (net metering rules matter a lot).
Local sunlight, roof orientation and shading.
Installer pricing — get multiple quotes, they vary widely.
State, local and utility incentives on top of the federal credit.

These figures are estimates for education, not a quote or financial advice. Confirm details with a licensed installer.

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Compare local installers — no obligation.

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