How to Use This Calculator

Enter your average monthly electric bill, estimated solar system cost, and the federal tax credit percentage. The calculator will project your savings over the selected time period.

After the federal tax credit (which reduces your upfront cost), you'll see how much you save compared to continuing with grid electricity.

Example Calculation

Let's say your monthly bill is $150 and you install a $20,000 system with the 30% federal tax credit:

Monthly bill: $150 ($1,800/year)
System cost: $20,000
After tax credit: $20,000 - $6,000 = $14,000
25-year electricity (3% increase/year): ~$67,000
Your savings: ~$53,000 over 25 years

Federal Solar Tax Credit (2026)

The federal solar tax credit (ITC) is one of the best incentives available:

2026: 30% of system cost
2033: Steps down to 26%
2034: Steps down to 22%
2035: 0% (unless extended)

The credit applies to both equipment and installation costs. You can claim it on your federal income tax return.

Additional Solar Incentives

State rebates - Some states offer $1,000-5,000
Utility rebates - Check your local utility company
Solar Renewable Energy Credits (SRECs) - Earn money from excess production
Property tax exemptions - Solar can increase home value without higher taxes

Is Solar Worth It in 2026?

Solar makes sense if:

You plan to stay in your home 7+ years
You have good sun exposure (south-facing roof)
Your electricity rates are high ($0.15+/kWh)
You can afford the upfront cost or use financing

Frequently Asked Questions

How long does it take for solar to pay for itself?

Most homeowners see a payback period of 6-12 years, depending on electricity rates, system cost, and available incentives. After that, you essentially get free electricity for the remaining 15-20 years of your system's life.

What happens to my electric bill with solar?

With a grid-tied system, you'll still pay for grid connection (typically $10-25/month) but greatly reduce or eliminate usage charges. With battery storage, you can go completely off-grid.

Do solar panels increase home value?

Studies show solar panels increase home value by 4-5% on average. A $20,000 solar system could add $15,000-20,000 to your home's value.

☀️ Free Solar Calculator