Solar Panel Cost Calculator
Estimate the cost and savings of installing solar panels on your home. See system size, payback period, and savings with federal tax incentives.
Enter your electric bill to see your solar estimate.
How It Works
Our solar calculator estimates your system needs based on your electric bill. We calculate the kilowatt (kW) system required to offset your usage, then estimate costs using current national averages of $2.85-3.20 per watt installed.
The 30% federal solar tax credit significantly reduces your net cost. This credit is available through 2032, then steps down to 26% in 2033 and 22% in 2034. Many states offer additional incentives that can further reduce costs.
Payback period represents how long until energy savings equal your investment. After that, your electricity is essentially free for the remaining 20-25+ year lifespan of your system.
Frequently Asked Questions
How long do solar panels last?
Most solar panels are warranted for 25-30 years and can produce power for 35-40 years. Panels typically degrade at 0.5-0.8% per year, meaning after 25 years they'll still produce 80-87% of original output. Inverters typically need replacement at 10-15 years.
Should I buy or lease solar panels?
Buying (cash or loan) maximizes savings and increases home value. You get the tax credit and full energy savings. Leasing requires no upfront cost but the leasing company keeps incentives and most savings. Leases can complicate home sales. Most experts recommend buying when possible.
Do solar panels work on cloudy days?
Yes, but at reduced efficiency—typically 10-25% of rated output on cloudy days. Solar works in all climates; Germany, with less sun than Alaska, is a top solar producer. System design accounts for local weather patterns to ensure adequate annual production.
What is net metering?
Net metering allows you to sell excess power back to the grid, spinning your meter backward. Your utility credits you for power you export, offsetting nighttime usage. Policies vary by state and utility—check local rules. Some areas offer 1:1 credits, others offer wholesale rates.
Should I add battery storage?
Batteries add $10,000-$20,000 to system cost but provide backup power and can store excess solar for evening use. They're most valuable if you have high time-of-use rates, frequent outages, or weak net metering. Battery costs are falling and efficiency is improving rapidly.