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Solar Panel Savings Calculator
Calculate how much solar panels could save you based on your current bill, system size, and electricity rate. See your estimated monthly savings, year-one savings, percent of bill offset, and a 25-year lifetime savings projection.
Check a recent statement — most U.S. households pay $100–$200/month.
Larger systems produce more energy and typically offset more of your bill.
Average home. The most common residential system size.
Check a recent utility bill — most U.S. homes pay $0.12–$0.24/kWh.
U.S. electricity rates have risen roughly 2-4% per year on average historically.
Estimated year-one savings
$1,061 – $1,435
6 kW system
Savings assumptions
Savings estimates assume ~1,300 kWh of production per installed kW per year, 0.5% annual panel degradation, and the utility rate increase you selected. Actual savings depend on your roof's sun exposure, shading, local utility net-metering policy, and real-world weather.
Estimates reflect national averages for educational purposes only. Actual savings vary by location, roof exposure, and utility policy. Always get 2–3 quotes before proceeding.
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What you'll need
- ·Your average monthly electric bill
- ·Estimated system size (4kW–12kW+) you're considering
- ·Your electricity rate in $/kWh (from a recent utility bill)
- ·Expected annual utility rate increase, if you want a custom projection
What you'll get
- ✓Estimated year-one savings — Projected first-year dollar savings range
- ✓Monthly savings — What you'd save on average each month
- ✓Percent of bill offset — How much of your current bill solar could cover
- ✓25-year lifetime savings — Long-term projection with rate increases and panel degradation
Solar savings overview
These examples assume ~1,300 kWh of production per installed kW per year at a $0.16/kWh electricity rate, shown as a ±15% range. Your actual savings depend on your roof's sun exposure, shading, local electricity rate, and utility net-metering policy — use the calculator above with your own numbers for a more accurate estimate.
How it works
Enter your current bill
Tell us your average monthly electric bill and the system size you're considering.
Set your rate assumptions
Adjust your electricity rate and expected annual utility rate increase.
Get your savings estimate
See your year-one savings, percent of bill offset, and 25-year total savings.
Estimated Year-One Savings by System Size
| System Size | Annual Production | Est. Year-One Savings |
|---|---|---|
| 4 kW | ~5,200 kWh | $707 – $957 |
| 6 kW | ~7,800 kWh | $1,061 – $1,435 |
| 8 kW | ~10,400 kWh | $1,414 – $1,914 |
| 10 kW | ~13,000 kWh | $1,768 – $2,392 |
| 12 kW | ~15,600 kWh | $2,121 – $2,870 |
Estimates assume $0.16/kWh electricity and ~1,300 kWh of production per installed kW per year. Actual savings depend on your local utility rate, sun exposure, and net-metering policy.
Frequently asked questions
How much money can solar panels save me?+
Savings depend on your system size, local electricity rate, and how much power you currently use. A typical 6 kW system producing around 7,800 kWh per year at a $0.16/kWh rate saves roughly $1,050–$1,435 in year one, with savings growing over time as utility rates rise.
Does system size affect my solar savings?+
Yes. A larger system produces more electricity, which directly increases how much of your bill it can offset. Doubling your system size roughly doubles your estimated production and savings, assuming your roof and sun exposure can support it.
What happens to my savings as utility rates rise?+
As utility rates increase, the electricity your solar panels replace becomes more valuable, so your savings grow year over year. This calculator lets you model an expected annual rate increase to project how your savings compound over a 25-year system lifetime.
Do these savings estimates account for panel degradation?+
Yes. Solar panels lose a small amount of output each year, typically around 0.5%, as they age. The 25-year lifetime savings projection factors in this gradual production decline alongside your expected utility rate increase.
Will solar cover 100% of my electric bill?+
It depends on your system size relative to your usage. A system sized to match your annual consumption can offset close to 100% of your bill, while a smaller system will offset a partial percentage. This calculator shows your estimated percent of bill offset based on your inputs.
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