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Solar Panel Calculator

Most solar panel calculators are lead-generation tools in disguise. You enter your address, your roof type, your electric bill, and within 24 hours you receive calls from 3 to 5 solar installers who purchased your contact information. The "calculator" was never about giving you the answer. It was about capturing your data.

This calculator does the actual math: how many panels you need, what the system costs before and after the federal tax credit, and how many years until the system pays for itself. It does not ask for your address because it does not need it. Sun exposure is estimated by region, and system sizing is based on your electric bill, not your roof measurements.

The 30 percent federal solar tax credit (Investment Tax Credit) reduces your upfront cost significantly. A $25,000 system becomes $17,500 after the credit. This calculator applies the credit automatically and shows both gross and net cost so you can plan your budget without surprises.

Solar Panel Calculator
20
solar panels (7.8 kW system)
Gross: $21,300. After 30% tax credit: $14,910. Break-even: ~8.3 years.

This calculator estimates costs. We will never ask for your address or connect you with installers.

How it works

The solar calculator works backward from your electricity consumption. Your monthly bill divided by your rate gives monthly kWh usage. Multiplied by 12, that is your annual consumption. The system needs to produce that many kWh per year to offset your bill completely.

Solar production depends on peak sun hours, which vary by location from 3.5 hours per day (cloudy northern regions) to 6.5 hours per day (desert Southwest). The calculator multiplies peak sun hours by 365 days and by an 80 percent efficiency factor (accounting for inverter losses, soiling, shading, and temperature derating).

System size in kilowatts equals annual kWh needed divided by annual production per kW. Panel count equals system size divided by individual panel wattage (typically 400 watts per panel in 2026). Total cost uses a national average of $2.75 per watt before the 30 percent federal tax credit.

When to use this calculator

Use this calculator when evaluating whether solar panels make financial sense for your home. The key variable is your electricity rate: homes paying $0.15 or more per kWh typically see payback in 7 to 12 years. Homes paying under $0.10 per kWh (common in states with cheap hydropower) may not break even within the panel lifespan. This calculator gives you the timeline so you can decide based on numbers, not a salesperson pitch.

Frequently asked questions

How do peak sun hours affect the system size I need?
Peak sun hours measure the intensity of sunlight at your location, averaged over the year. A home in Arizona gets about 6.5 peak sun hours daily, while a home in Seattle gets about 3.5. More sun means fewer panels needed to produce the same energy. A 2,000 sqft home in Arizona might need 16 panels, while the same home in Seattle needs 28 to 30 panels.
What does the 30 percent federal tax credit cover?
The Investment Tax Credit covers 30 percent of the total installed cost, including panels, inverter, racking, wiring, permitting, and labor. If your system costs $25,000 installed, your tax credit is $7,500, reducing your net cost to $17,500. This is a tax credit (dollar-for-dollar reduction of taxes owed), not a deduction. You need sufficient tax liability to claim the full credit in the filing year.
How quickly do solar panels degrade?
Modern solar panels degrade at roughly 0.5 percent per year. After 25 years, a panel is still producing about 87 percent of its original output. Most manufacturers guarantee at least 80 percent output at 25 years. This degradation is accounted for in long-term payback calculations but does not significantly affect the first 10 to 15 years of production.
Does my roof orientation matter?
South-facing roofs produce the most energy in the Northern Hemisphere. West-facing roofs produce about 80 to 85 percent as much, which is still viable. East-facing roofs produce similar to west but shift production to morning hours. North-facing roofs are generally not suitable for solar. If your roof faces east or west, you may need 15 to 20 percent more panels to match a south-facing system.
What is the difference between grid-tied and off-grid systems?
Grid-tied systems stay connected to the utility grid and use net metering to sell excess power back. They are simpler, cheaper, and the most common residential setup. Off-grid systems include battery storage and are completely independent of the utility. They cost 2 to 3 times more due to battery costs. Most homeowners choose grid-tied because it eliminates the need for expensive battery banks.

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