Solar Savings Calculator
Cost EstimatorEstimate how many solar panels you need and how much you could save on your electricity bill over 25 years.
Your Measurements
Find this on your electricity bill. US avg is ~900 kWh/month
Use NREL's PVWatts tool for your exact ZIP code
EIA avg: $0.16/kWh
SEIA avg: $2.80/W
Reduces system cost — verify eligibility with a tax advisor
Panel Selection & System Sizing Guide
Choosing the right solar panel for your home requires balancing wattage, efficiency, and roof space. Modern residential panels range from 350–500 W, with higher-wattage panels producing more power per square foot of roof. According to the SEIA, the median installed cost for a residential system under 10 kW is $2.8/watt — fully installed, including hardware, labor, and permitting. A typical US household consuming 900 kWh/month needs a system between 6–10 kW to offset 80–100% of its electricity bill, depending on location and shading.
Roof Readiness & Site Assessment
Before signing a solar contract, verify that your roof can support a 25-year system. Most installers require a minimum roof pitch of 10° for proper water runoff and panel efficiency. Critically, your roof must have at least 10 years remaining lifespan — installing solar on a roof that will need replacement in a few years means paying to remove and reinstall every panel. South-facing roofs at a 30–45° tilt produce the most energy in the continental US, though east- and west-facing orientations are increasingly common with modern microinverter systems. Consider running a professional home energy audit to optimize your baseline consumption, which impacts your solar payback period.
Regulatory Building Standards — IRA Section 48E / 25D — 2026
Cited StandardThe Inflation Reduction Act (IRA) extended and expanded the residential solar Investment Tax Credit (ITC) to 30% for systems installed through 2032. This means a homeowner who installs a $25,000 solar system can claim a $7,500 reduction in their federal income taxes — not a deduction, but a dollar-for-dollar credit. The credit covers panels, inverters, battery storage, labor, permitting, and interconnection fees. After 2032, the credit steps down to 26% in 2033 and 22% in 2034 before expiring for residential installations under current law.
To qualify, you must own the solar system outright (leased systems do not qualify), it must be installed at your primary or secondary US residence, and you must have sufficient federal tax liability to absorb the credit. Unused credit can be carried forward to future tax years. Always consult a qualified tax professional before claiming the ITC, as eligibility rules and income requirements may apply depending on your tax situation.
- •Residential solar installations qualify for a 30% federal tax credit through 2032.
- •Tax credit covers solar panels, inverters, battery storage, labor, and permits.
- •The homeowner must own the solar system; leased systems do not qualify.
- •Unused credit can be carried forward to subsequent federal tax years.
Frequently Asked Questions
Technical building code (IRC/ASTM) references and trade-tested guidance for your project.
The average US home uses approximately 900 kWh of electricity per month. At 4.5 peak sun hours per day and 400 W panels operating at 80% efficiency, a typical home needs between 18–22 panels (7–9 kW system) to offset 100% of its electricity bill. System size varies by location, roof orientation, and shading.
The Investment Tax Credit (ITC) under the Inflation Reduction Act allows homeowners to deduct 30% of their total solar installation cost from their federal income taxes. It applies to the full system cost — panels, inverters, labor, and battery storage. You must own the system (not lease it), and you must have sufficient federal tax liability to claim the credit in the year of installation.
At current US average electricity rates ($0.16/kWh) and a $2.80/W installed cost, a typical homeowner recovers their investment in 7–10 years. With the 30% ITC, payback shortens to 5–8 years. Homes in high-rate states like California, Hawaii, and Massachusetts often achieve payback in 4–6 years.
Yes. A 2019 Zillow study found that homes with solar systems sold for 4.1% more than comparable non-solar homes — about $9,274 more on a $225,000 home. The benefit is highest in high-electricity-cost states. Owned (not leased) systems typically add value; leased systems can complicate the sale.
Related Projects & Standards
Explore adjacent calculations and the construction codes linking these tasks on the job site.
Roof Replacement Cost
Get a roof replacement cost estimate based on home size, pitch, and roofing material.
Open CalculatorRemodeling ROI Calculator
See how much value a home improvement project adds at resale, based on NAR 2025 data.
Open CalculatorHVAC Replacement Cost
Estimate the cost of replacing your HVAC system based on home size and system type.
Open CalculatorRelated Guides & Project Advice
Read our trade-tested analysis, choosing building materials, and budgeting tips related to this calculation.
Solar Panel Costs in 2026: What You Pay, What You Get Back, and When
A residential solar system costs $18,000–$25,000 before the 30% federal tax credit. Whether that investment makes financial sense depends on your electricity rate, roof orientation, net metering policy, and how long you plan to stay.
Solar Payback Period: How to Calculate Yours and What Changes It
The national average solar payback is 6–9 years, but your actual number depends on electricity rates, net metering policy, and roof conditions. Here's the calculation that gives you a real answer.
Home Energy Audits: What They Test, What They Find, and How the Federal Tax Credit Works
A professional home energy audit uses blower door testing and thermal imaging to quantify air leakage and identify insulation deficiencies. The Section 25C federal tax credit covers 30% of the cost, up to $150.