Solar Panel Savings Calculator
Calculate your monthly and 25-year cumulative electric bill savings from residential solar panels, factoring in utility rate inflation and optional loan financing.
Current Bill & System Offsets
Solar Bill Savings Equation
Monthly Bill Savings = Current Electric Bill × System Offset % | Net Monthly Savings = Bill Savings - Loan Payment- Current Monthly Bill: Average monthly utility payment before installing solar.
- System Offset %: Share of household electricity consumption generated by the solar array (typically 80% to 100%).
- Utility Escalation: Historical compounded utility electricity inflation rate (historically 2.5% to 4.5% annually in the US).
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes net metering (NEM) or bill credit parity for grid energy export.
- 25-year projection accounts for compounding annual utility electricity rate escalation.
Frequently Asked Questions
Will solar panels completely eliminate my electric bill?
Usually not completely. Even with 100% solar production offset, most electric utilities charge a mandatory fixed monthly customer service fee ($10 to $25/month) to stay connected to the power grid.
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