Solar ROI Calculator
Calculate your rooftop solar investment payback period, annual bill savings, and 25-year lifetime financial return after government subsidies.
Calculator Inputs
LiveHow to use the Solar ROI Calculator
- 1Enter gross turnkey solar installation cost.
- 2Enter government subsidy or solar tax credit amount.
- 3Enter your current monthly electricity bill.
- 4Adjust expected bill offset percentage (default is 90%).
- 5View the payback period in years, 25-year net profit, and total return on investment.
How Solar ROI is Calculated
Net system cost is divided by cumulative annual electricity savings, factoring in an annual tariff inflation rate across the standard 25-year panel warranty lifespan.
Utility tariff inflation (typically 3-5% annually) accelerates payback by increasing future savings.
- 1Net Cost = $5,000
- 2Year 1 Savings = $120 × 12 × 0.90 = $1,296/year
- 3Payback Period = $5,000 / $1,296 = ~3.8 years
- 425-Year Net Profit = Over $35,000 after paying off the initial capital cost.
What affects Solar ROI results
- Local net-metering policies and feed-in tariff compensation rates for exported excess power.
- Available federal, state, and central government rooftop solar subsidies.
- Inverter replacement cost typically incurred around year 10-12.
Frequently Asked Questions
What is net metering?
Net metering is a billing mechanism that credits solar system owners for electricity they export to the grid during the day, offsetting what they draw at night.
How long do solar panels last?
Most tier-1 solar panels carry performance warranties guaranteeing 80% to 85% of original output after 25 to 30 years.
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