Solar payback calculator
Already have a price and a savings estimate? Check the payback properly, with degradation, maintenance and the time value of money.
Payback
12.0 years
Counting rate increases, degradation and maintenance. The simple "cost ÷ savings" shortcut says 12.4 years.
- Discounted payback
- 17.5 yrsat 5.0%
- Net after 25 years
- $30,978148% total return
- Annual return (IRR)
- 7.6%NPV $6,556
Show as a table
| Year | Net position |
|---|---|
| 0 | −$21,000 |
| 1 | −$19,475 |
| 2 | −$17,912 |
| 3 | −$16,310 |
| 4 | −$14,669 |
| 5 | −$12,987 |
| 6 | −$11,263 |
| 7 | −$9,496 |
| 8 | −$7,685 |
| 9 | −$5,830 |
| 10 | −$3,928 |
| 11 | −$1,979 |
| 12 | $18 |
| 13 | $2,065 |
| 14 | $4,163 |
| 15 | $6,313 |
| 16 | $8,516 |
| 17 | $10,774 |
| 18 | $13,088 |
| 19 | $15,460 |
| 20 | $17,890 |
| 21 | $20,381 |
| 22 | $22,933 |
| 23 | $25,549 |
| 24 | $28,230 |
| 25 | $30,978 |
Net position: $30,978 after 25 years
Why sales paybacks look shorter
Common shortcuts divide cost by first-year savings, assume fast rate increases, ignore panel degradation and maintenance, and subtract a tax credit that no longer exists for 2026 purchases. Each one shaves years off the real payback.
Questions
What is a good solar payback period?
With panels lasting 25+ years, a payback under 10 years is strong, 10 to 15 is reasonable, and over 15 is marginal, especially if you might move.