Solar Panel Payback Period Estimator
Simple payback period plus a lifetime savings view, with degradation.
Simple payback period: 12.5 years
First-year savings: $1,600.00
Cumulative net savings (production − system cost, with degradation)
10 years
-$4,355.24
20 years
$10,524.65
25 years
$17,689.52
What is this tool?
Simple payback = system cost ÷ first-year savings (annual production × rate). Cumulative net savings at 10/20/25 years extends that by applying a yearly production-degradation rate — panels produce slightly less each year, commonly cited around 0.5%/year, though your panel warranty's figure is authoritative. Annual production is a number you enter yourself; this tool does not calculate it from your location, roof, or weather data.
How to use it
- Enter total system cost and your estimated first-year annual production in kWh.
- Enter your current electricity rate and, optionally, adjust the degradation rate.
- Read the simple payback period and cumulative net savings at 10, 20, and 25 years.
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