Solar Calculator: Estimate Your Savings

Find out how much you could save by shifting to clean and green solar electricity from your traditional sources using our easy-to-use solar calculator tool.

$
Sqft

*Your Current Expenditure

Annual Energy Consumption

Annual Energy Consumption (KWh)

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KWh

Annual Electricity Cost

Annual Electricity Cost

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$

Approx. Inflation rate

Approx. Inflation rate

-

3 %

The average inflation rate on electricity charges has been 3% over the years.
Approx. Electricity Bill Cost In 25 Years

Approx. Electricity Bill Cost In 25 Years

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$

This cost includes the 3% inflation rate as well.

*Savings From Solar

Panels That Can Be Installed In Your Available Space

Panels That Can Be Installed In Your Available Space

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This is calculated based on the available space in your residence.
Installation Cost

Installation Cost

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$ - $

Annual Power Production By Solar Panels

Annual Power Production By Solar Panels

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KWh

Shortage In Supply Of Solar Power

Shortage In Supply Of Solar Power

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KWh

This shows the gap in energy production from solar panels. This is calculated by analyzing the number of solar panels installed and your average annual energy requirement. Most people cover this gap by having a traditional source of electricity along with solar to get at least benefit from solar power.
Payback Period

Payback Period

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Years

Net Savings From Installed Panels

Net Savings From Installed Panels

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$

How Does This Loan Calculator Work?

Shifting to solar energy is a major financial decision, and our solar calculator is designed to break down the essential details to simplify making this decision. In this section, find out how our calculator works and the meaning of terminologies used in the tool.

How To Understand The Results Of The Calculator

The purpose of this calculator is to show how much you may spend on your existing electricity source in the long run and compare it with the potential cost of Solar energy.

  • We take your average monthly electricity cost and KWh usage and the open area available at home for installing solar panels for calculation.
  • The average monthly electricity cost gives us a glimpse of your yearly expenditure on electricity and how much you spend in 25 years.
  • To calculate the 25 years estimate, we also consider a year-on-year 3% inflation rate (this is an approx. value).
  • The information on the available space tells us how many panels can be attached to your roof.
  • Your average monthly electricity usage details tell us how much electricity you use.
  • With the information on available space and electricity usage, we check how much power can be generated on your roof and how much it fulfills your average annual requirement.
  • We also consider how much electricity you may have to get from the traditional source if Solar does not entirely meet your requirements.
  • So, we deduct the amount you may pay for the second power source and solar installation to show you how much you can save with solar energy in the long run.

Consider This Example That We Have Taken From An Electricity Bill Of A Residence In Minnesota To Understand The Calculations Better:

View Sample Electricity Bill

Disclaimer: The user information on the electricity bill is blurred to protect the data of the user as per our policy. Please note that the information is intended to educate, and these bills may differ from state to state, as per your usage.

  • The monthly bill paid by this household for the month is $114 for 705 KWh of electricity usage.
  • This particular residence has 1000 sqft. space on its terrace that could accommodate 18 solar panels (based on the size of the panels, open space, and usage requirements).
  • This indicates that this household may pay (114 * 12) $1,368 annually and ($1368*25 + 3% annual compounded inflation rate) $54,322 in 25 years.
  • The savings in this household installed solar is calculated by installation cost for approximately 18 solar panels, which can cost $13,500 to $18,500.
  • Additionally, based on the average monthly usage of 705 KWh and the potential power generation capacity of 18 solar panels, we calculate that the household may spend an additional $3,264 on acquiring electricity to compensate for the deficiency in solar power generation at this time.
  • Including the cost of installing solar and acquiring additional power sources, the household can recover the total cost in just 9 years, saving approximately $41,631 in 25 years.

Parameters required to calculate:

Monthly Electricity Cost

Monthly Electricity Cost

Monthly electricity is the amount you pay monthly for using the electricity from your service provider. We need an average monthly cost you incur for these calculations.

Energy Consumption

Energy Consumption

Energy consumption refers to the electricity you consume per month. We need this figure to calculate your approximate requirements.

Space Available For Panels

Space Available For Panels

This is the free space available for solar panel installation at your residence. This value is required to calculate how many solar panels can be installed at your residence.

Factors displayed in the result:

Total Panel Required

Total Panel Required

This factor is calculated by considering the open space available in your home and average power usage.

Installation Costs

Installation Costs

The installation cost factor depends on the number of panels to be installed at your home.

Annual Power Production By Solar Panels

Annual Power Production By Solar Panels

The annual power production factor is calculated by considering the number of panels and their potential to produce power.

Shortage In Supply Of Solar Power

Shortage In Supply Of Solar Power

This factor in the result means the difference in the electricity you require and the electricity your solar panels can produce. This shows if solar can manage your requirements entirely or if you require an alternative power source to compensate for the shortage in supply.

Payback_Period

Payback Period

The payback period indicates the number of years you may require to break even on your expenses of installing solar panels.

Net Savings From Installed Panels

Net Savings From Installed Panels

The result shows how much money you save by installing solar panels in the long run.

Things To Consider Before Opting For A Loan

When applying for a loan it can be beneficial for you to plan and calculate your payments. We have created a checklist that will help you get started. Take a look:

Plan As Per Your Budget

It's a good idea to determine what you can afford to pay as monthly installments if you require or wish to take out a loan. You would not want to commit to a monthly payment that will be difficult for you to make. Additionally, evaluate whether you qualify for a loan and, if so, determine how much they offer you.

Make A Decision On Your Collateral

If you wish to opt for a secured loan, deciding whether you want to put up collateral is extremely important. Secured loans often offer lower rates of interest, but they involve risk. In exchange for the loan, you put up securities, such as your car or home. The lender may seize your property if you fail to pay your loan.

Compare Offers

It is advisable to look around and evaluate loan offers from several lenders. If feasible, you can check your expected rate by applying for prequalification. It can indicate loan rates and terms without putting a formal query on your credit reports.


While comparing various offers and plans, you must also consider checking the additional charges or the processing fee. Usually, banks charge some sort of amount when giving a loan. So, it’s better to clarify the same before committing to anything.

Tax Credit

Tax credits are an effective instrument that can lower your yearly tax burden. A tax credit can lower the amount of tax you owe or boost your tax refund by reducing your income tax liability dollar for dollar. Additionally, they differ from exemptions and deductions.

As long as the system produces electricity for a house in the US, you are eligible for the Solar Investment Tax Credit (ITC).

For systems installed between 2020 and 2022, the ITC will offer a tax credit of 26% in 2021; for systems installed in 2023, the credit will be 22%.

Gaining all tax benefits and credits the investment in solar power systems can contribute to your solar savings.

Tax Credit

Other Incentives

Like how the federal ITC operates, the state government also imply state tax credits. The amount and rebate differ state-by-state and they usually do not affect your federal tax credits. Also, subsidized loans and local tax exemptions also benefit the owners to maximise their profit.

lightbulbFinancial Planning got stronger with our EMI calculator.

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How Can You Invest Your Solar Savings

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Homeowners make significant savings after going solar. Beyond stocks, you have many more investment possibilities. You may put your money in high-yielding savings accounts, crypto, mutual funds, government bonds and so on.

Wondering about the money that you can earn on your investment? Check out our investment calculator to know the potential gain on your savings.

Top Solar Energy Companies To Consider

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Spotting the right solar companies can consume your time. However, the company needs to be legit and promising so that it upholds your solar installation sincerely. Therefore, we have listed some popular solar companies that are making a lasting impression in the solar industry.

Get the quote of the solar companies in your area

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FAQs

Is the installation of solar panels at my house a good idea?

Solar panels can benefit you in many ways, including lowering your carbon footprint and raising the value of your home. According to research by the National Renewable Energy Laboratory (NREL), residences powered by solar electricity saw a boost in their home value. And, going solar is the kindest thing you can do for the environment.

Are the Climate and Weather in My Area Suitable for Solar Energy?

It depends. The ability of a solar panel to generate power can be affected by clouds, hot weather, rain, and snow. Because it is based on how much sunshine actually reaches the solar cells. But, the solar panel still produces energy while it is in the shade.

Will Solar Power Replace All Other Electricity Sources for Me? Will "The Grid" Still Be Connected to My House?

Since the climate stays an important factor for energy production. homeowners choose to rely on the grid to prevent power supply issues.

What happens If My Panels Produce More Energy than Is Required?

The extra energy can be sent back to the utility grid. The power company often reimburses you for any excess electricity produced. This is called net metering. The main advantage of net metering is that your electricity is paid for at the retail price.

What if I Move to another property or place?

Calculate the price of transporting and reinstalling your solar power system at your new home. See if you are getting a justified amount if you sell the system, then take your call.