Solar Panel ROI Estimator

Investing in solar panels is a significant financial decision that can lead to substantial long-term savings and environmental benefits. This calculator helps you evaluate the financial viability of a solar energy system for your home or business.

Key Factors in Solar ROI:

• Monthly Electricity Bill: Your current energy consumption directly impacts your potential savings.
• System Cost: The upfront cost of purchasing and installing the solar panel system.
• Tax Credits & Incentives: Government incentives (like the federal solar tax credit) can significantly reduce your net cost.
• Annual Degradation Rate: Solar panels gradually lose efficiency over time. A typical degradation rate is around 0.5% to 1% per year.
• Electricity Inflation Rate: The rate at which your electricity costs are expected to increase annually. This enhances the value of your solar savings over time.

The payback period is the time it takes for the cumulative energy savings to equal the initial net cost of the solar system. The 25-year ROI provides a long-term view of the total financial benefit, considering the typical lifespan of a solar panel system.

Beyond Financial Savings:

• Environmental Impact: Reduce your carbon footprint and contribute to a cleaner environment.
• Increased Home Value: Homes with solar panels often sell for a premium.
• Energy Independence: Reduce reliance on utility companies and protect yourself from rising electricity prices.