CalcAxis/Tech & Digital/Solar Payback
Tech & DigitalUpdated · Aug 2026

Solar Payback Calculator

Model simple payback, break-even, NPV, IRR, levelized cost, degradation, rate escalation, export value, maintenance, and optional financing.

~30s to useFormula and inputs shown·2 FAQs
Start with your numbers

Solar Payback Calculator

Change the inputs that matter to your decision. Optional assumptions stay collapsed until you need them.

System and utility

Start with a real proposal and tariff; this model is for comparing scenarios, not predicting a guaranteed return.

kW
$/W
$/kWh
%
years

Verified incentives

Defaults use no federal residential credit after the 2025 termination. Enter only incentives applicable to your installation and tax situation.

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%
$
OptionalLong-term assumptions
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OptionalFinancing
Solar investment case
Modeled simple payback
11.80 years

Break-even in year 12; modeled NPV is $5,885 over 25 years.

Net system cost$18,000
First-year savings$1,638
IRR7.73%
Positive modeled NPV

$26,886 cumulative net cash flow and $0.11/kWh modeled levelized cost.

First five modeled years
Year 1$1,3389,636 kWh · cumulative -$16,662
Year 2$1,3719,588 kWh · cumulative -$15,291
Year 3$1,4049,540 kWh · cumulative -$13,887
Year 4$1,4389,492 kWh · cumulative -$12,450
Year 5$1,4729,445 kWh · cumulative -$10,977

Scenario model only. Validate proposal production with site-specific PVWatts output and verify degradation, maintenance, export compensation, financing, taxes, and incentives independently.

/ 01 · FAQ

Frequently asked questions

Practical notes about the inputs, assumptions, and result.

Simple payback asks when undiscounted cumulative cash flow crosses zero. NPV discounts future cash flows, so it can be negative even when a project eventually pays back.

Use the tariff's actual compensation for exported electricity. Full retail net metering is 100%; avoided-cost or wholesale compensation may be materially lower.

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