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Solar Panel Cost & Savings Calculator

Estimate what home solar costs and what it saves — by system size or your electric bill. You get the gross price, net cost after the 30% federal tax credit, annual savings, simple payback, and 25-year net savings.

Inputs

Leave blank to size it from your bill below.

Used only when system size is blank. Sizes a system 2–20 kW.

US average is $0.16; CA is ~$0.29; WA is ~$0.11.

Result

Adjust the inputs to see your result.

How the estimate works

Solar is priced per watt. A 6 kW system is 6,000 watts, and residential installs run about $2.50–$3.50 per watt installed before incentives — so that 6 kW system costs roughly $15,000–$21,000 gross. The calculator multiplies your system size by the cost-per-watt range (or a single budget/premium price if you pick a tier) to get the gross cost.

Then it applies the 30% federal Investment Tax Credit, dropping net cost to about 70% of gross. Production comes from your sun region — roughly 1,100 kWh per kW per year in low-sun areas, 1,300 average, 1,500 in the sunny Southwest — times your system size. Multiply annual production by your electricity rate for annual savings, divide net cost by that for simple payback, and project 25 years of savings against the net cost for lifetime net savings.

No system size? Size it from your bill

If you don't have a system size in mind, leave it blank and enter your monthly electric bill. The calculator converts the bill to annual kWh at your rate, divides by your region's production factor to estimate the kW you'd need to cover that use, and clamps the result to a realistic 2–20 kW residential range. It's a starting point — an installer will fine-tune it to your roof and goals.

What drives the price and the payback

  • System size sets both cost and production — bigger systems cost more but save more.
  • Your electricity rate is the single biggest payback lever. At $0.30/kWh solar pays back roughly twice as fast as at $0.15.
  • Sun region swings annual production by ~35% between cloudy north and sunny southwest for the same panels.
  • The 30% federal tax credit is the difference between a marginal and an attractive payback — but only if you owe enough federal tax to claim it.

Common mistakes

  • Quoting gross cost and forgetting the credit. The 30% ITC is real money — net cost is about 70% of the sticker.
  • Assuming the tax credit is a check. It offsets taxes you owe; it doesn't pay you cash if you have no liability.
  • Sizing by house square footage. Size by your kWh use — a 2,000 sq ft all-electric home needs far more solar than a gas-heated one.
  • Taking one bid. Solar pricing varies 30%+ between installers for the same hardware. Get multiple quotes — EnergySage matches you to several for free.

When this calculator is the wrong tool

Use a detailed proposal (and NREL's PVWatts) for: shade analysis, exact roof layout and panel count, battery and net-metering economics, time-of-use rate modeling, or local utility and state incentives stacked on the federal credit. This tool gives you an honest cost-and-savings ballpark to decide whether solar is worth pursuing.

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FAQ

Questions, answered

How much does solar cost?
Residential solar runs roughly $2.50–$3.50 per watt installed before incentives, so a typical 6 kW system costs about $15,000–$21,000 gross. After the 30% federal tax credit that drops to roughly $10,500–$14,700 net. Your final price depends on system size, equipment, roof, and local labor — get multiple quotes.
Is solar worth it?
For most homeowners with a sunny roof and an electricity rate of $0.14/kWh or higher, yes — solar typically pays for itself in 8–12 years and then produces nearly free power for another 15-plus years, for $15,000–$25,000 in net lifetime savings on a 6 kW system. It's less attractive if your rate is very low, your roof is heavily shaded, or you'll move within a few years.
What is the solar payback period?
Payback is the net system cost divided by your annual electricity savings. A 6 kW system at $0.16/kWh in average sun saves about $1,250 a year, so a ~$10,500–$14,700 net cost pays back in roughly 8–12 years. Higher electricity rates and sunnier regions shorten it; low rates and shade lengthen it.
What is the federal solar tax credit?
The federal Investment Tax Credit (ITC) lets you subtract 30% of your solar system's cost from your federal income taxes. On a $18,000 system that's a $5,400 credit. It's current through 2032. It's a credit against tax owed, not a cash rebate — you need enough federal tax liability to use it, though unused credit can roll forward.
How much does solar cost for a 2,000 sq ft house?
House size matters less than your electricity use, but a 2,000 sq ft home often needs a 6–9 kW system, which runs about $15,000–$31,500 gross ($10,500–$22,050 net after the 30% credit). The right way to size it is from your annual kWh use or monthly bill — enter your bill above and the calculator estimates the system for you.