Calculate Your Solar Savings in 60 Seconds

This calculator provides estimates based on national averages and typical solar installation costs. Actual costs and savings vary based on your location, roof condition, local electricity rates, available incentives, and the solar company you choose. For a precise quote, we recommend getting proposals from multiple installers.

The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of your solar installation cost from your federal taxes. If your system costs $20,000, you get a $6,000 tax credit. This is a credit (not a deduction), meaning it directly reduces your tax bill. The 30% rate is available through 2032 under the Inflation Reduction Act.

If your tax liability is less than the credit amount in the first year, you can roll over the remaining credit to future tax years. The ITC has no cap and can be carried forward. Consult with a tax professional to optimize your credit usage.

Quality solar panels typically last 25-30+ years. Most manufacturers offer 25-year performance warranties guaranteeing at least 80-85% efficiency after 25 years. The inverter (which converts DC to AC power) usually needs replacement after 10-15 years, costing $1,000-$3,000.

Generally, solar panel installation requires homeownership since it's a permanent modification to the property. However, some options exist for renters: community solar programs (subscribe to a local solar farm), portable solar panels for small appliances, or negotiating with your landlord to install panels (they benefit from increased property value).

Most homeowners choose one of three options: (1) Cash purchase - highest long-term savings, full tax credit; (2) Solar loan - $0 down, monthly payments often less than current electric bill, you own the system and get tax credit; (3) Solar lease/PPA - $0 down, little/no maintenance, but no tax credit and lower overall savings. Compare all options with multiple installers.