How to Calculate Average Returns on Solar Panels

Investing in solar panels is a great way to save on electricity bills and contribute to clean energy.

Course Information

Difficulty: Going advanced, Making progress

Categories: Guides, Saving with solar, Solar panels

Tags: Electric bill, Environmental justice, Federal incentives, Solar cost, State and local incentives

Course Instructor

Nataliia Pushyk Author

Guide Structure

Understanding the Key Factors in Solar ROI Calculation

Understanding the key factors in solar ROI calculation helps you determine how much you’ll save, how quickly you’ll recover your investment, and how to maximize long-term financial benefits.

Calculating Payback Period & Annual Savings

Calculating the payback period and annual savings helps you determine how long it takes to recover your investment and how much money you’ll save each year with solar panels.

Estimating Average Return on Investment (ROI) Over Time

To calculate your total return on investment (ROI), subtract the initial cost of your solar system from the total savings over its lifespan, then divide by the initial cost and multiply by 100 to express it as a percentage.