Are Solar Panels Worth It?

Solar is a 25-year bet. The inputs that actually decide whether it pays off are your net system cost, your electricity rate, and how many sun hours your roof sees. Installers know the first two cold. The third one they sometimes round up.

What a system costs

Installed cost runs roughly $2.50 to $3.50 per watt before incentives, which puts a typical 8 kW system between $20,000 and $28,000 gross. The 30% federal tax credit then takes about a third off that figure. Estimate your net cost in the solar cost calculator.

The 30% tax credit

The federal Residential Clean Energy Credit takes 30% off your total system cost, batteries included, straight off your tax bill. Not a deduction from income. An actual credit. The difference is bigger than it sounds. Run your numbers in the tax credit calculator.

Payback and savings

The number that matters most is payback: how many years of avoided electric bills it takes to recover your net cost. That runs 7 to 12 years for most US homeowners. After that point, every kilowatt-hour the panels produce costs you nothing, and rising utility rates keep widening the margin in your favor. Model your own scenario in the savings calculator.

Sizing it right

The right system size depends on your actual usage and your local sun hours. A home in Portland needs a bigger array than an identical home in Phoenix even if both households use exactly the same electricity. The system size calculator handles that math once you enter your monthly kWh and location.

When solar makes financial sense

• Your electric rates are above average and you have good sun.
• Your roof is in solid condition with minimal shading.
• You plan to stay in the home past the payback point.
• You have federal tax liability to apply the credit against.