Solar Panel Savings Calculator
Estimate the yearly electricity savings and payback period of a home solar system from its size, your local sun hours and power price.
Annual savings
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Yearly generation —
Payback period —
25-year savings —
Assumes an 80% performance ratio; excludes incentives, panel degradation and future price rises.
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How it works
Annual output = kW × sun hours × 365 × performance ratio; savings = output × priceFrequently Asked Questions
How much can solar panels save?
A 6 kW system in a sunny region (5 peak sun hours) generates about 9,800 kWh a year; at $0.20/kWh that's roughly $1,960 saved annually, so a $15,000 system pays back in around 7–8 years.
What is the payback period for solar?
System cost divided by yearly savings — commonly 6–10 years in high-price, high-sun areas, longer where power is cheap or sun is limited. After payback, the electricity is essentially free for the panels' 25-year life.
What are peak sun hours?
The equivalent hours per day of full-strength sunlight — around 3–4 in cloudy northern climates and 5–6 in sunny southern ones. It's the single biggest driver of solar output, so use a local figure.