Solar Panel ROI Calculator
Calculate your solar panel payback period and 25-year savings with federal and state tax credits.
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Your Solar Investment Summary
8 kW system in California
Cumulative Savings Over Time
Annual Production Estimate
A 8 kW system in California with 5.8 average sun hours per day produces approximately 16,936 kWh per year — enough to offset more than your electricity bill.
Are Solar Panels Worth It in 2026?
Solar panel costs have dropped dramatically over the past decade, and with the federal 30% Investment Tax Credit (ITC) still available in 2026, the economics are better than ever. The average American homeowner recoups their solar investment in 6-10 years, then enjoys free electricity for 15-20 more years.
State incentives vary significantly — some states like New York and Massachusetts offer additional credits worth 10-25% of system cost, while others rely primarily on the federal credit. Your local sun hours also play a major role: Arizona homeowners generate about 40% more energy than those in Michigan with the same system.
For a state-specific analysis, check our Solar Savings by State pages, which break down the economics for each of the 50 states.