Your electricity bill
Look at a recent electric bill for both numbers. US average is $0.16/kWh; California is $0.30+; Texas around $0.13. Higher rates mean faster solar payback.
System size
A typical residential system is 6-10 kW. Each kW produces roughly 1,200-1,600 kWh per year depending on location. Most installers will size to offset 80-100% of your annual usage.
Location and sun
A 1 kW system in Arizona produces ~1,800 kWh/year; the same system in Seattle produces ~1,100 kWh/year.
Cost and incentives
National average installed cost is around $3.00/W in 2026. Higher in CA/NY ($3.50-4.50), lower in TX/AZ ($2.50-3.00). This is gross cost before incentives.
The federal Residential Clean Energy Credit is currently 30% through 2032, but check current law as it may change. State incentives vary widely – check the DSIRE database for your area.
Your payback
Gross cost
$0
before incentives
Net cost
$0
after tax credit/rebates
Annual production
0
kWh per year
Annual savings
$0
of bill offset
Payback period
0 yrs
break-even point
25-year savings
$0
over warranty period
Solar panels typically have 25-year warranties and produce about 0.5% less each year. Calculations assume 2% annual electric rate inflation and full net metering credit. Actual savings depend on your utility’s net metering policy, time-of-use rates, and any added battery storage. Always get 3+ quotes before signing.