Solar Cost Calculator
Estimate solar system cost, tax credit savings, and payback
Total rated solar capacity
Your state (affects local rates & sun hours)
After 30% Tax Credit
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USD
Annual Savings
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USD/yr
Gross Cost
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USD
Payback Years
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years
Disclaimer: Results are estimates based on standard formulas. Not a substitute for professional advice from a licensed contractor, engineer, or architect. Verify all calculations before making purchasing or construction decisions.
How to Use This Calculator
Wondering whether solar is worth it? This calculator breaks down the full cost picture — upfront price, tax credit, yearly savings, and how long until the system pays for itself.
- Enter your planned system size in kW
- Select your state for localized context
- Review the gross cost and net cost after the 30% tax credit
- Compare annual savings against the payback period
Expert Insights
Smart analysis for your Solar project
Tax Credit Optimization
The 30% federal ITC applies to panels, inverters, racking, labor, and permitting. Claiming every eligible line item maximizes your credit.
Savings Estimation
We estimate roughly $1,300 in annual bill offset per kW of solar. Higher local electric rates push savings — and speed up payback.
Location Impact
Sun-rich Arizona pays back fastest, while New York's high rates offset lower sunlight. Local net metering rules also shift the math.
Calculation Formula
Gross cost = ceil(System size * $3,000 per kW)
Net cost = ceil(Gross cost * 0.7) (after 30% federal tax credit)
Annual savings = ceil(System size * $1,300 per kW)
Payback years = ceil(Net cost / Annual savings * 10) / 10
Solar Cost by Location
| Location | Avg Cost per Watt | Peak Sun Hours | Typical Payback |
|---|---|---|---|
| California | $2.80-3.50 | 5.5 | 6-8 years |
| Texas | $2.70-3.40 | 5.0 | 7-9 years |
| New York | $3.00-3.80 | 4.2 | 9-12 years |
| Arizona | $2.60-3.30 | 6.5 | 6-8 years |
| Other (US avg) | $2.80-3.50 | 4.5 | 8-11 years |
Authority References
Our calculations are based on guidelines and standards from these authoritative sources:
- National Renewable Energy Laboratory (NREL) — Solar Technology Cost & Pricing Analysis. Learn more
- Solar Energy Industries Association (SEIA) — Residential Solar Investment Tax Credit. Learn more
- U.S. DOE — Homeowner's Guide to the Federal Tax Credit for Solar PV. Learn more
Frequently Asked Questions
How much does a solar system cost?
A typical residential solar system costs about $3,000 per kW before incentives. A 6 kW system runs roughly $18,000 gross, dropping to around $12,600 after the 30% federal tax credit.
What is the 30% federal solar tax credit?
The federal Residential Clean Energy Credit (ITC) refunds 30% of total solar system cost — equipment, labor, and permitting — as a credit against your federal income tax liability.
How long does it take for solar to pay for itself?
Most US residential systems pay back in 7-12 years. Sunny states with high electricity rates often pay back in 6-8 years; cloudy, low-rate regions can take 12+ years.