US Solar Panel Break-Even Calculator
Calculate the break-even point and long-term savings for solar panel installation in the United States. Analyze system costs, energy savings, federal and state tax incentives, and environmental impact based on US ZIP code data.
System Information
Average home needs 4-8 kW
Cost per kilowatt installed
Location & Conditions
Energy & Costs
Financial Incentives
Current 2024 federal solar tax credit (ITC) -IRS Form 5695 ↗
Solar Investment Summary
Monthly Savings Timeline
Environmental Impact
Financial Metrics
Calculation Details & Important Considerations
Why Monthly Savings Increase Over Time
Solar savings increase annually because electricity rates typically rise 3-5% per year due to inflation, while your solar panels generate the same amount of free electricity. This means you avoid purchasing increasingly expensive grid electricity.
Example: If electricity costs $0.12/kWh today and rises 3% annually, it will cost $0.24/kWh in 25 years. Your solar panels still generate the same free electricity, doubling your savings.
Data Sources & References
Solar Irradiance Data
Incentive Information
Electricity Rates
Installation Costs
Important Considerations
Additional Costs Not Included
- • Annual Maintenance: $200-400/year for cleaning and inspections
- • Potential Repairs: $500-2000 for component failures or storm damage
- • Inverter Replacement: $2000-4000 every 10-15 years
- • Insurance Impact: May increase homeowner's insurance by $50-200/year
Performance Risk Factors
- • Weather Variability: Cloudy years can reduce production by 10-20%
- • Shading Issues: Tree growth or new construction can significantly reduce output
- • Panel Degradation: Panels lose ~0.5% efficiency annually (included in calculations)
- • Policy Changes: Net metering policies may change, affecting compensation rates
Understanding Solar Energy
How Solar Works
Solar panels convert sunlight into electricity through photovoltaic cells, providing clean renewable energy for your home.
Financial Benefits
Solar panels provide long-term savings on electricity bills and increase your property value while protecting against rising energy costs.
Environmental Benefits
Solar energy reduces your carbon footprint and contributes to a cleaner environment for future generations.