Solar ROI & Payback Calculator
Calculate solar break-even point. Includes the 30% Federal Tax Credit and utility inflation.
Solar payback period projects how many years of electricity savings it takes to repay your system's net cost. It's calculated as Payback Years = Net System Cost ÷ Annual Energy Savings, where savings compound as utility rates rise and panel output degrades slightly each year.
Break-Even Point
10.3 Years
25-Year Net Profit
+$51,476
Est. Tax Credit
$0
System Config
The 30% federal credit expired for systems placed in service after Dec 31, 2025. Enter a rate only if a state or utility incentive applies to you.
Cash Flow Projection
25-Year Lifecycle Audit
Solar Economics in 2026
The federal Residential Clean Energy Credit — the 30% ITC that shaped solar economics for over a decade — expired for systems placed in service after December 31, 2025, per the IRS. Payback timelines now depend almost entirely on your local utility rate and any state-level programs, so check with your state energy office before assuming a federal discount.
The Payback Formula
Solar ROI Inquiries
?Is solar worth it in 2026?
It depends more on your utility rate and any state or local incentives than in past years. The 30% federal Residential Clean Energy Credit expired for systems placed in service after December 31, 2025, so the math now rests on utility savings alone unless a state-level program applies where you live.
?What happened to the Federal Solar Tax Credit?
The 30% Residential Clean Energy Credit (ITC) applied to systems installed through the end of 2025. Per the IRS, it is not available for property placed in service after December 31, 2025. Check with a local installer for any remaining state or utility-level incentives.
?Do solar panels degrade over time?
Yes, Tier-1 panels typically degrade at 0.5% per year, maintaining ~87% output after 25 years.