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Solar Panel Savings Calculator

Estimate annual solar energy production, annual savings, and simple payback period from basic system assumptions.

Result

Estimated annual energy production

9,855 kWh

Estimated annual savings

$1,576.80

Simple payback period

11.42 years

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How to use this calculator

What this calculator does

Estimate annual solar energy production, annual savings, and simple payback period from basic system assumptions.

How to use it

Enter your system size, average sun hours per day, electricity price, system cost, and days per year, then review the result, formula, example, and FAQs below. Try a few scenarios to see which inputs move the result most.

What the result means

Use the result as a direct calculation from the values you entered. If it looks off, check the inputs and formula shown on this page.

Browse more energy & home calculators for related estimates and comparisons.

Results are estimates for planning and education. Actual costs depend on tariffs, usage habits, climate, equipment efficiency, local prices, maintenance, and provider rules.

Scenario guidance

When to use this

Use this when making a first-pass estimate of solar production, savings, and simple payback before reviewing quotes.

Example scenario

A homeowner is comparing a 5 kW and 7 kW solar proposal and wants a rough savings estimate using local electricity prices.

Inputs that usually matter most

  • System size in kW, because it drives potential generation.
  • Average sun hours per day, which varies by location, season, roof angle, and shading.
  • Electricity price and system cost, which drive savings and simple payback.

Common mistake to avoid

Do not treat simple payback as a full financial analysis; incentives, degradation, maintenance, financing, export rates, and provider rules can change results.

How to interpret the result

Use annual production, savings, and payback as rough planning estimates, then compare them with installer quotes, local tariffs, and actual site conditions.

Results are estimates and do not promise savings, payback, eligibility, or environmental impact.

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Formula

Annual production = system size kW x sun hours per day x days per year

Annual savings is annual production multiplied by electricity price per kWh. Simple payback divides system cost by annual savings.

Example solar estimate

A 6 kW system with 4.5 sun hours per day over 365 days produces about 9,855 kWh per year. At $0.16 per kWh, estimated annual savings are $1,576.80.

Frequently Asked Questions

Does this include incentives or net metering?

No. Add incentives, export credits, financing, maintenance, and local program rules separately.

Why can solar production differ from this estimate?

Production depends on weather, shading, roof angle, equipment efficiency, maintenance, degradation, and local climate.

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