Home Calculators Blog
Modern home roof with full array of sleek all-black solar panels

Solar Panel Cost Calculator

Enter your electric bill and state to see installation cost, 30% federal tax credit, payback period, and 25-year savings — powered by real NREL PVWatts solar production data for your location.

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1. Your Home

Electricity prices are state-wide averages from the U.S. Energy Information Administration. Solar production estimates are powered by the NREL PVWatts model using real weather data for your state. Override with your actual rates in Advanced Settings for more accurate results.

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2. System Options

Override Defaults (editable)

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3. Your Solar Estimate

Fetching solar production data for your state...

wb_sunny Federal Solar Tax Credit (IRA)

Your system qualifies for a $0 federal tax credit — 30% of the installed cost under the Inflation Reduction Act. This credit is available through 2032 and applies dollar-for-dollar against your federal income taxes. Learn more at Energy.gov.

Monthly Solar Production

Item Amount

Estimates based on state-average electricity prices, NREL PVWatts solar production models, and current installation costs. Actual costs depend on your roof, local installer pricing, and utility net metering policies. This is a planning tool, not a binding quote. Solar production assumes 0.5%/year panel degradation and estimates 2%/year electricity price inflation.

How This Calculator Works

This calculator estimates the 25-year cost and savings of installing solar panels on your home, combining real solar production data with your state’s electricity prices and current installation costs.

System sizing starts from your monthly electric bill. We divide your bill by your state’s electricity rate to get your monthly kWh usage, then annualize it. Using NREL’s PVWatts model — which incorporates decades of weather data for your state — we calculate how many kilowatts of solar capacity you need to offset your usage.

Solar production is calculated by the NREL PVWatts v8 model, the same tool used by solar installers nationwide. It accounts for your state’s solar irradiance, temperature effects on panel efficiency, and system losses (wiring, inverter, soiling). We adjust for your roof orientation and shading conditions.

Financial projections use your state’s average installation cost per watt, the 30% federal Investment Tax Credit (ITC) under the Inflation Reduction Act, and a 25-year savings model that accounts for 0.5% annual panel degradation and 2% annual electricity price inflation. The payback period is the year your cumulative electricity savings exceed your net system cost.

Solar Panel Guides

In-depth articles on materials, costs, and decisions.

Frequently Asked Questions

How much do solar panels cost in 2026? expand_more
The average cost of solar panels in 2026 is $2.50–$3.50 per watt before incentives. A typical 6 kW residential system costs $15,000–$21,000 before the federal tax credit. After the 30% Inflation Reduction Act tax credit, the net cost drops to $10,500–$14,700. Costs vary significantly by state — solar is cheapest in Arizona, Texas, and Florida, and most expensive in the Northeast. Installation costs include panels, inverter, racking, permitting, and labor.
How many solar panels do I need for my home? expand_more
The number of solar panels you need depends on your electricity usage and location. A typical US home uses 10,500 kWh per year. In a sunny state like Arizona, you’d need about 15–18 panels (6 kW system). In a cloudier state like Ohio, you’d need 20–25 panels (8 kW system) to offset the same usage. Enter your monthly electric bill in this calculator to get a personalized estimate based on your state’s solar production data.
What is the federal solar tax credit for 2026? expand_more
The federal solar Investment Tax Credit (ITC) is 30% of the total installed cost through 2032, thanks to the Inflation Reduction Act. This is a dollar-for-dollar reduction on your federal income taxes. For a $18,000 system, that’s $5,400 back. The credit steps down to 26% in 2033 and 22% in 2034. There is no maximum credit amount for residential systems. You must own the system (not lease it) to claim the credit.
How long does it take for solar panels to pay for themselves? expand_more
Solar panel payback periods typically range from 6 to 12 years depending on your state, electricity costs, and system size. States with high electricity rates (California, Connecticut, Massachusetts) see payback in 6–8 years. States with cheap electricity (Louisiana, Idaho) may take 10–12 years. After the payback period, your solar panels generate essentially free electricity for another 15–20 years. Most solar panels come with 25-year performance warranties.
Is solar worth it in 2026? expand_more
For most homeowners, yes. The 30% federal tax credit makes solar more affordable than ever. Electricity prices have risen 3–5% annually over the past decade, which increases solar savings over time. A typical system saves $20,000–$50,000 over 25 years after accounting for all costs. Solar also increases home value by an average of 4.1% according to Zillow. The main exceptions are homes with heavy shading, very low electricity bills (under $75/month), or roofs that need replacement soon.
How long do solar panels last? expand_more
Modern solar panels are designed to last 25–30 years and come with 25-year performance warranties guaranteeing at least 80–85% of original output. In practice, panels degrade about 0.5% per year, meaning after 25 years they still produce about 87% of their original output. The inverter typically needs replacement once during the system’s life (around year 12–15) at a cost of $1,500–$2,500. Overall maintenance is minimal — occasional cleaning and inspections.

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