Solar Panel Payback Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Your solar panels would pay for themselves in about 14.7 years.
You would save $1,092 in the first year and $33,688 over 25 years, against $18,000 up front, if power prices rise 3% a year.
Payback time
14.7 years
Every kWh you use yourself saves $0.18; every one you export earns $0.08.
Show the working
Year 1 = 8,400 kWh × (50% × 0.18 + 50% × 0.08) = 1,092
Output falls 0.5% a year; prices rise 3% a year
Payback when savings reach 18,000: 14.7 years
Savings year by year
| Year | Saving | Running total |
|---|---|---|
| 1 | 1,092 | 1,092 |
| 2 | 1,109 | 2,201 |
| 3 | 1,127 | 3,328 |
| 4 | 1,145 | 4,473 |
| 5 | 1,163 | 5,636 |
| 10 | 1,264 | 11,749 |
| 15 | 1,379 | 18,409 |
| 20 | 1,511 | 25,693 |
| 25 | 1,661 | 33,688 |
Questions people ask
How long do solar panels take to pay back?
Often 6 to 12 years, depending on the cost, your sunshine, your power price and how much of the power you use yourself rather than export.
Why does self-use matter so much?
Power you use yourself saves the full price you would pay the supplier. Power you export usually earns much less, so the more you use at home, or store in a battery, the faster the payback.
Do panels lose output?
Yes, slowly. This calculator takes 0.5% off the output each year, a common warranty figure.
Updated 22 Oct 2026Source: Typical costs and yields per countryChecked by AotobDefaults are typical for each country; get installer quotes for real figures.Report an issue