Solar Savings Calculator

What Changed in 2026: Federal ITC Expired

The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act (OBBBA). New solar installations in 2026 no longer qualify for this credit. However, many states still offer meaningful incentives: property tax exemptions, sales tax exemptions, state income tax credits, and net metering programs. This calculator automatically loads 2026 state incentive data for your state — no manual lookup needed.

What to Enter in the Solar Savings Calculator

ZIP Code: Your location determines your local electricity rate and peak sun hours — the two biggest factors in your solar savings. California, Arizona, Texas, and Florida homeowners typically see the highest savings due to high sun exposure and above-average electricity rates.

Monthly Electricity Bill: Enter your average monthly bill. This tells the calculator how much electricity you use and how large a system you need. A higher bill means a larger system — and larger annual savings. The calculator uses your bill and local electricity rate to estimate your actual kWh consumption.

Roof Orientation: South-facing roofs are optimal for solar production in the US, generating around 100% of maximum output. East or west-facing roofs produce about 85–90%. North-facing roofs produce around 70–75% but can still make financial sense depending on your electricity rate.

What You'll Learn From This Solar Savings Calculator

This free solar savings calculator gives you a complete financial picture in under 30 seconds. Here's exactly what the results include:

• Annual and 25-year savings — See exactly how much money solar will save you, year by year
• Recommended system size — Find out how many kW and how many panels you need
• Installation costs and state incentives — Total cost and any applicable state tax credits, property/sales tax exemptions, and net metering status — automatically sourced from your state's 2026 data
• Payback period and ROI — Know exactly when your system pays for itself and your total return
• Environmental impact — CO2 offset, tree-planting equivalent, and home value increase

Solar Panel Costs in 2026

The average solar installation in the US costs $2.75–$4.25 per watt, or $16,500–$25,500 for a typical 6–8 kW system. With the federal ITC now expired, there is no longer a 30% federal deduction for residential purchases. State-level incentives vary significantly — some states like Arizona still offer a $1,000 state tax credit, while others like Colorado offer sales tax exemptions. Our calculator uses $3.75/watt as a 2026 baseline and automatically applies your state's applicable incentives.

Solar panel prices have dropped over 90% in the last 15 years. Even without the federal credit, the combination of lower equipment costs, rising electricity rates, and state incentives continues to make solar a strong investment for most US homeowners. Learn about all available incentives in our Solar Incentives Guide.

State Solar Incentives Still Available in 2026

While the federal 30% ITC is gone, many states offer their own incentives. Common types include:

• Property Tax Exemption — Solar-added home value is excluded from property tax reassessment (available in ~36 states)
• Sales Tax Exemption — No sales tax on solar equipment purchases (available in ~25 states)
• State Income Tax Credit — Direct credit against state income taxes (e.g., Arizona offers up to $1,000)
• Net Metering (NEM) — Excess solar electricity credited to your utility bill at retail or near-retail rates

Your results will show all applicable incentives for your ZIP code's state, sourced from DSIRE and SEIA data verified May 2026. For a full listing, see the DSIRE Incentive Database.

How Solar Panels Work on Your Home

Solar panels convert sunlight into DC electricity, which an inverter converts to AC power for your home. During the day, you use solar electricity directly. Any excess goes back to the grid for a credit (net metering) or charges a battery for nighttime use. At night or on cloudy days, you draw from the grid normally. Most solar homes reduce their grid consumption by 70–90%.

Understanding the basics before getting installer quotes puts you in a much stronger negotiating position. Read our complete Solar Basics guide to learn everything you need to know before signing anything.

Why Go Solar in 2026?

Solar panels can reduce your electricity costs by 60–85% while increasing your home value by an average of $15,000–$25,000. Despite the federal ITC expiring, electricity rates continue rising 3–5% annually, solar panel prices remain near all-time lows, and state incentives remain strong in most markets. Run the numbers with our solar savings calculator before getting installer quotes. For additional resources, visit the Energy.gov Solar Guide or the DSIRE Incentive Database.