How Much Can Solar Save You?

Our estimates use average installed system costs ($2.90/W), state-specific electricity rates (EIA data), peak sun hours, and the 30% federal investment tax credit. Real quotes from local installers will be more precise and may vary 15–25% based on your roof, shading, and panel brand.

The Federal Investment Tax Credit (ITC) lets you deduct 30% of your total solar installation cost from your federal income taxes. It applies to systems installed through December 31, 2032. This is a dollar-for-dollar reduction in the taxes you owe — not just a deduction.

Rooftop solar is available to homeowners only. However, renters and condo owners can benefit from community solar programs — you subscribe to a share of a local solar farm and receive credits on your electric bill, typically saving 5–15%.

Most solar panels carry a 25-year performance warranty and typically last 25–30+ years. Output degrades approximately 0.5% per year, so after 25 years your panels should still produce about 87% of their original output.

Common options include solar loans (our calculator assumes a 15-year loan at ~7% APR), solar leases/PPAs (no upfront cost but you don't own the panels), and HELOC/home equity loans. Owning your system outright through a loan gives you the full benefit of the tax credit.