Solar Savings Calculator — Monthly Savings from Solar
Monthly Savings
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Annual Savings
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Monthly Production (kWh)
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Estimated Payback Period
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How to Calculate Solar Panel Savings
Solar savings depend on system size, sunlight hours, electricity rates, and current usage. A typical residential system (6 kW) produces about 720-900 kWh per month in sunny areas, potentially offsetting 50-100% of an average electric bill.
The 30% federal Investment Tax Credit (ITC) significantly reduces upfront costs. After the ITC, a 6 kW system costs approximately $12,600 (at $3/watt). Many states offer additional incentives, rebates, and net metering credits.
Average payback periods range from 6-12 years, after which solar provides essentially free electricity for 15-20 more years. Solar panels typically last 25-30 years with gradual efficiency degradation of about 0.5% per year.
Frequently Asked Questions
How much do solar panels cost?
As of 2025, the average cost is $2.50-$3.50 per watt before incentives. A 6 kW system costs $15,000-21,000 before the 30% federal tax credit, bringing the net cost to $10,500-14,700.
How many solar panels do I need?
Divide your monthly kWh usage by (peak sun hours x 30 x 0.8) to get the kW size needed. Then divide by the wattage of each panel (typically 350-400W). Most homes need 15-25 panels.
Do solar panels work on cloudy days?
Yes, but at reduced efficiency. Solar panels produce 10-25% of their rated output on cloudy days. Annual averages already account for cloudy days. Performance varies significantly by geographic location.