Home Solar Panel ROI Guide
A residential solar system generates electricity for 25–30 years. The upfront cost is significant, but ongoing savings on your electricity bill allow you to recoup that investment within a decade in most cases. This calculator estimates your monthly savings and payback period based on your system size and local electricity rate.
The US national average is about 4.5 peak sun hours per day, so a 5 kW system produces roughly 675 kWh per month. If your monthly usage is higher than what the panels generate, all generation goes to self-consumption. If generation exceeds your usage, the excess can often be sold back to the grid through net metering.
The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of installation costs from your federal taxes. Many states offer additional rebates. Be sure to enter the net cost after all applicable incentives.
Frequently Asked Questions
Yes. South-facing roofs at a 30–35° tilt produce the most energy in the US. East or west-facing roofs generate roughly 80% of the south-facing output. A solar installer can provide a site-specific production estimate.
Net metering policies allow you to sell surplus electricity back to the utility, typically at or near the retail rate. This calculator only accounts for self-consumed savings — net metering credits would shorten the payback period further.