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Solar Panel Cost Calculator

Estimate solar panel system cost and payback period.

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Solar Panel Cost

The 30% federal tax credit is a dollar-for-dollar reduction of your tax liability — you must owe at least that much in federal taxes to claim it. Solar panel efficiency degrades approximately 0.5% per year, so a 25-year-old system still produces about 88% of its original output. Ask installers about financing options — solar loans at 3-6% APR are widely available.

What This Calculator Does

The Solar Panel Cost Calculator estimates the cost of installing a residential solar panel system based on your home size, energy usage, and 2026 US national average pricing. Enter your monthly electric bill and home size to get system size and cost estimates. This broad planning estimate helps you decide if solar is worth pursuing.

Solar panel installations have grown significantly, with federal tax incentives (30% Investment Tax Credit) making systems more affordable in 2026. System costs have decreased approximately 70% over the past decade, making solar increasingly accessible for US homeowners. Actual pricing varies by region, installer, and roof complexity.

How to Use

  1. Enter your average monthly electric bill (check your utility statement).
  2. Enter your home square footage (used to estimate roof space).
  3. Select your roof type - asphalt shingle, tile, or metal.
  4. Select your state or region for local pricing adjustment.
  5. Click "Calculate" to see the estimated system size, cost, and payback period.

Worked Examples

1

Residential Solar Installation for a 1,800 Sq Ft Home

An 1,800 sq ft home in Atlanta, GA with a $180 monthly electric bill, asphalt shingle roof with good southern exposure.

  1. →System sizing: $180/month at $0.14/kWh = 1,286 kWh/month usage. Offset target: 100% = approximately 7.2 kW system.
  2. →Before tax credit: 7,200 watts x $3.00/watt = $21,600. After 30% federal credit: $21,600 x 0.70 = $15,120.
  3. →Panel count: 7,200W / 400W panels = 18 panels. Roof area needed: 18 x 18 sq ft each = 324 sq ft.
  4. →Estimated annual production: 7.2 kW x 1,400 hours sun/year = 10,080 kWh/year. Savings: $180/month x 12 = $2,160/year.
  5. →Payback period: $15,120 / $2,160 = 7 years. Over 25-year panel life: $54,000 total savings minus initial cost.

Result: An 18-panel, 7.2 kW system for an 1,800 sq ft home costs approximately $15,100 after tax credit with a 7-year payback.

Solar panels produce most during peak sun hours (10 AM to 4 PM). If your utility has time-of-use rates, panels offset the most expensive electricity. Pairing with a battery ($7,000-$15,000) adds backup power but extends payback by 3-5 years.

Reference Table

Solar panel costs by home size - 2026 US averages before federal tax credit
Home SizeSystem SizeBefore Tax CreditAfter 30% CreditEst. Payback
1,200 sq ft5 kW$12.5K-$17.5K$8.8K-$12.3K7-10 years
1,800 sq ft7 kW$17.5K-$24.5K$12.3K-$17.2K7-11 years
2,400 sq ft9 kW$22.5K-$31.5K$15.8K-$22.1K8-12 years
3,000 sq ft11 kW$27.5K-$38.5K$19.3K-$27K8-12 years

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