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Solar Power Online Calculator

Payback Period Formula:

\[ \text{Payback} = \frac{\text{Cost}}{\text{Annual kWh} \times \text{Rate}} \]

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1. What is a Solar Payback Calculator?

Definition: This calculator estimates how many years it will take for solar panel savings to equal the initial investment cost.

Purpose: It helps homeowners and businesses evaluate the financial viability of solar power systems.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ \text{Payback} = \frac{\text{Cost}}{\text{Annual kWh} \times \text{Rate}} \]

Where:

Explanation: The system cost is divided by annual savings (kWh produced × electricity rate) to determine payback period.

3. Importance of Payback Calculation

Details: Understanding payback period helps assess solar investment returns and compare with other financial options.

4. Using the Calculator

Tips: Enter total system cost, estimated annual production (kWh), and your electricity rate (default $0.12/kWh). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's included in "System Cost"?
A: Include panels, inverters, installation, permits, and any additional equipment.

Q2: How do I estimate annual kWh production?
A: Most installers provide estimates, or use PVWatts calculator from NREL.

Q3: Should I include incentives?
A: Subtract tax credits/rebates from system cost for net cost calculation.

Q4: What's a good payback period?
A: Typically 5-10 years is considered good, as panels last 25+ years.

Q5: Does this include maintenance costs?
A: No, solar systems have minimal maintenance (typically 1% of cost/year).

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