Solar Savings Calculator
The average 6 kW residential solar system costs $15,000-$21,000 after the 30% federal tax credit in 2026 and generates $1,200-$2,400 in annual electricity savings — but your specific numbers depend on roof orientation, local utility rates, and available state incentives.
How the Calculator Works
Our calculator uses three inputs to estimate your solar economics: your monthly electricity bill (determines system size needed), your zip code (pulls local utility rates, solar irradiance data, and state-specific incentives), and your roof characteristics (orientation and shading affect production by 15-30%).
From those inputs, we calculate system size in kilowatts, estimated annual kWh production using NREL’s PVWatts methodology, equipment costs based on current market pricing ($2.50-$3.50/watt installed), applicable federal and state incentives, annual savings at your utility’s current rates, simple payback period, and 25-year net present value.
What You’ll Need
Have a recent electricity bill handy — you’ll need your monthly kWh usage (not just the dollar amount, since rate tiers affect the calculation). If you don’t have a bill, $150/month is a reasonable starting estimate for most American homes.
Knowing your roof’s orientation helps too. South-facing roofs in the northern hemisphere produce 15-25% more solar electricity than east or west-facing roofs. North-facing roofs are typically not suitable for solar. And any significant shading from trees or neighboring buildings can reduce production by 10-40%.
Key Assumptions in Our Estimates
Our calculator uses conservative assumptions: 1.5% annual electricity rate increases (the 20-year national average is 2.2%), 0.5% annual panel degradation (most premium panels degrade at 0.25-0.4%), and current 2026 equipment pricing from Tier 1 manufacturers. We don’t inflate savings projections with aggressive rate increase assumptions.
All federal incentive calculations use the current 30% ITC rate through 2032. State incentive data is updated quarterly from DSIRE (Database of State Incentives for Renewables & Efficiency) and individual state program offices.
After Your Estimate
A calculator gives you ballpark numbers. For a precise quote, you need a site assessment from a qualified installer who can evaluate your specific roof, electrical panel, utility interconnection requirements, and permitting needs. Use EnergyRanked’s solar installer directory to connect with pre-vetted professionals in your area.
Want to understand the cost landscape before getting quotes? Our Solar Panel Cost Guide breaks down pricing by system size, panel brand, and region. And our state incentive guides detail every available rebate, tax credit, and net metering policy.
For system sizing questions (how many panels do I actually need?), check our How Many Solar Panels Do I Need guide. And for understanding whether the investment pencils out long-term, our Solar ROI Calculator guide explains IRR, payback periods, and how to compare solar against other investments.