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Solar ROI Calculator

Solar PV ROI depends on system size, installed cost per watt, regional production, utility rate, and federal Investment Tax Credit. The 30% ITC through 2032 plus state/utility incentives often pulls payback to 5-10 years for residential and 4-8 years for commercial. This calculator computes net cost, payback, and lifetime savings with utility rate inflation.

$

$2.50-4.00 typical residential

Production by region

$
%
%

Simple payback (yrs)

8.6

Net cost (after ITC)

$19,040

Lifetime net return

$61,845

Lifetime savings

$80,885

Federal ITC

$8,160

How the math works

Solar ROI hinges on local utility rate, system production, and ITC eligibility. The federal Investment Tax Credit (ITC) covers 30% of system cost through 2032, then 26% in 2033, 22% in 2034, expires for residential after 2034.

State and utility incentives stack on top — net metering rates, SRECs, and property tax exemptions can shorten payback by 2-5 years.

How to Use

  1. Enter system size (kW DC) and installed cost per watt.
  2. Enter annual production per kW and current utility rate.
  3. Enter federal ITC %, analysis horizon, and rate inflation.
  4. Read payback years, net cost, lifetime savings, and net return.

Frequently Asked Questions

What's a typical $/W?

Residential $2.50-4.00; commercial $1.50-3.00. Higher quality panels and complex roof installs push higher.

Production by region?

Sun Belt 1,500-1,800 kWh/kW/yr; Mid-Atlantic 1,200-1,400; Pacific Northwest 1,000-1,200. Use NREL PVWatts for site-specific estimates.

Net metering vs feed-in tariff?

Net metering credits exported energy at retail rate (best); newer NEM 3.0 (CA) uses lower wholesale rate. Check your utility tariff before sizing system.

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