Solar panel payback 2026 — United States: calculator

Calculated in US dollars. By default the electricity price is 18.19¢ per kWh — the EIA US average residential price, January–August 2026 (preliminary), and the yield is 1,591 kWh per kW a year (World Bank, US average up to 60°N). Prices and yields differ widely between states. The default cost of $3,000 per kW is only an example — enter the installer's quote, and your net metering or export credit in the export field.

Example for the default values — change any field and the result updates.

Production in the first year, kWh7,955
Saving a year724 USD
Simple payback, years20.7
Net saving over 25 years2,043 USD

The result is an estimate, not financial or legal advice. Check the exact terms with the company.

Verified companies: Solar panels · United States

  1. 1Namaste Solar86/100
  2. 2PV Squared64/100
  3. 3SolarTech63/100
  4. 4ION Solar61/100

See the full ranking

How it is calculated

Production in the first year = size (kWp) × specific yield (kWh per kWp a year). The yield is the country average of the World Bank Global Photovoltaic Power Potential study (PVOUT, kWh/kWp/day × 365). It describes well-oriented, optimally tilted panels: a shaded or steep roof, or one facing east or west, produces less.

Saving a year = production × (self-consumption % × electricity price + (1 − self-consumption %) × export price). Power you use while the panels generate replaces power bought at the full tariff; the surplus is sent to the grid and earns the export price (0 if nobody pays for it).

Simple payback = cost ÷ first-year saving, without interest or tariff changes. Net saving over 25 years = the sum of 25 yearly savings, each 0.5% lower than the previous one (an assumed panel degradation), minus the cost. Maintenance, inverter replacement, financing and subsidies are not included — subtract a subsidy from the cost yourself.

Frequently asked questions

Is there still a federal tax credit for home solar?

No for new systems: according to the IRS, the Residential Clean Energy Credit (30% of the cost) is not available for property placed in service after December 31, 2025.

Which electricity price does the calculator use?

18.19¢ per kWh — the US total residential average price, year to date through August 2026, from EIA Electric Power Monthly Table 5.6.B (preliminary). State averages are in the same table — enter your own rate.

How much does a solar panel produce in the US?

On average about 1,591 kWh a year per kW of optimally tilted panels (World Bank Global Photovoltaic Power Potential study, US up to 60°N: 4.36 kWh per kW a day). Southern and southwestern states produce more, northern ones less.

Sources