Global solar decision tool

Solar Savings &
Payback Calculator

Estimate first-year savings, payback time and 10, 20 and 25-year returns—using your own quote, electricity rate, export credit and solar production.

✓ No sign-up✓ Editable assumptions✓ Transparent formulas
Use local evidence

Electricity prices, export compensation and incentives vary by utility and jurisdiction. This tool does not invent a global average—enter values from your own bill, quote and official local program. New to the calculation? Read the step-by-step solar payback formula and editable example.

Your numbers, not national averages

Calculate solar savings and payback

Enter figures from your installer quote, electricity bill and a location-specific production estimate.

Updates instantly
01

Currency and system

No exchange-rate conversion is applied.

02

Production and energy value

Use your own utility and location values.

03

Long-term assumptions

Set either value to 0 for a flat projection.

Every step is visible

How the calculation works

System capacity is shown for context and yield checking. Annual production drives the savings model because location, orientation, shade and system losses determine output.

01

Net upfront cost

installation cost − verified rebate

The rebate is capped at the installation cost; no negative upfront cost is created.

02

Generation in year y

year 1 kWh × (1 − degradation)^(y−1)

Set degradation to zero if you do not want production to decline in the projection.

03

Savings in year y

self-used kWh × retail rate + exported kWh × export credit

The retail rate grows by your tariff-increase input; export credit stays flat.

04

Payback and simple ROI

ROI = 25-year net savings ÷ net cost × 100

Payback is interpolated within the year when cumulative savings recover the net cost.

Official production reference

Start with a location-specific energy estimate.

NREL’s PVWatts® Calculator estimates the energy production of grid-connected photovoltaic systems throughout the world. Use its annual kWh result here, then compare it with a qualified installer’s site-specific estimate.

Open the official PVWatts Calculator ↗PVWatts is a modelling tool, not a generation or financial guarantee.

Read before deciding

What this estimate does not include

A clear boundary is more useful than false precision. Add these items to your own decision process where they apply.

Finance

Loan interest, lease or power-purchase agreement terms, taxes and opportunity cost.

Equipment

Battery operation, inverter replacement, maintenance, cleaning, insurance and downtime.

Utility rules

Fixed or demand charges, net-metering caps, time-of-use rates and future export-policy changes.

Site variation

Weather, shade, soiling, clipping, outages, roof orientation and equipment performance.

Disclaimer

This free calculator provides an educational estimate, not financial, engineering, tax or legal advice and not a savings guarantee. Verify all inputs and decisions with your utility, official incentive authority, qualified solar professional and financial adviser where appropriate.

Frequently asked questions

Solar payback, explained

How is solar payback calculated?+

The calculator subtracts your verified rebate or subsidy from the installation cost, then adds each year's avoided electricity cost and export credit. Payback is the point when those cumulative savings equal the net upfront cost.

Why does self-consumption affect solar savings?+

Solar used on-site avoids the retail electricity price, while exported electricity may receive a different credit. Separating the two prevents the calculator from valuing every generated kWh at the same rate.

Where can I estimate yearly solar production?+

Use a qualified site assessment or the official PVWatts Calculator. PVWatts estimates grid-connected PV energy production worldwide using location and system inputs; actual output can still vary with weather, shade, equipment and maintenance.

Does this calculator include batteries, loans or maintenance?+

No. It is a simple cash-purchase projection. It does not model battery dispatch, finance interest, taxes, maintenance, inverter replacement, insurance, demand charges or changing export rules unless you account for them in your own cost inputs.

Are the currency options exchange rates?+

No. Currency selection only formats the figures. Keep installation cost, rebate, electricity price and export credit in the same currency.

Is the result a quote or savings guarantee?+

No. The result is an educational estimate based entirely on the values and assumptions you enter. Verify system design, incentives, tariffs, export rules and financial terms with qualified local professionals and official authorities.