Solar power payback period calculator

How do I calculate my solar payback period?

To calculate your solar payback period, divide your combined costs by your annual savings. Combined costs ($18,552) / annual savings ($2,613) = solar payback period (7.1 years) In this example, your payback time would be 7.1 years, which is the average solar payback period for most EnergySage shoppers.

What is a solar payback period?

Calculated Payback Period: This is the estimated number of years it will take for the savings from your solar system to cover its initial installation and operational costs. A shorter payback period indicates a more efficient return on investment, meaning you will start reaping the financial benefits of your solar system sooner.

What are the payback periods on EnergySage?

Payback periods vary by state, depending on the availability of incentives, the cost of solar, and the cost of electricity. Here's a quick breakdown of the payback periods we see on EnergySage: Note: These costs are based on EnergySage Marketplace data. They were last updated on February 25, 2025.

How long does it take to pay back solar panels?

How fast you can pay back the cost of installing solar panels will depend on the size of your solar system, feed-in tariffs and how much you're currently paying towards your energy bill. On average, it can take between 4 to 6 years to recover costs.

What is the annual payback for solar projects?

The internal rate of returns for solar projects are generally anywhere from 6-10% with a payback period of 7-10 years. This is in the absence of renewable energy credits (RECs) or other statewide assumptions.

How long does it take to recover solar energy costs?

On average, it can take between 4 to 6 years to recover costs. However, with energy prices predicted to go up by 50% over the next 2 years, your payback period could likely shorten. Not keen on rough numbers? You can add in your details in the solar power payback calculator for a more precise estimate.