Solar ROI Calculator — Payback & 25-Year Return for 2026

See when your system pays for itself and what it earns you over 25 years, accounting for rising electricity prices and panel degradation.

⏱ ~25 sec📈 25-yr model🔒 No signup

Your return

10.8 yrs
Payback period
Net system cost$16,800
Total savings (25 yrs)$41,200
Net profit$24,400
Return on investment145 %

Model assumes savings grow with your rate escalation and shrink with panel degradation each year — not a flat multiplication.

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Further reading: Cash vs. Loan vs. Lease vs. PPA: Which Solar Financing Actually Wins?

How the ROI model works

Year 1 production (kWh) = Size (kW) × Sun hours/day × 365 × 0.8
Savings in year Y = Production × (1 − degradation)^(Y-1) × Rate × (1 + escalation)^(Y-1)
Payback = first year cumulative savings ≥ net system cost

Two assumptions drive most of the disagreement between solar ROI calculators: how fast electricity prices rise, and how much panels degrade. We default to 3% annual rate escalation (roughly the long-run average in mature grids) and 0.5% yearly output loss (typical for a modern monocrystalline panel with a 25-year warranty), but both are yours to change.

Frequently asked questions

Does this include financing costs?

No — this models a cash purchase. If you're financing, use the Solar Loan Calculator alongside this one to compare your loan payment against the monthly savings shown here.

Why does my payback period look worse than an installer's quote?

Installer quotes sometimes assume optimistic sun hours, no degradation, or higher-than-typical rate escalation. Try their production estimate in the sun-hours field to compare apples to apples.

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