Solar Panel ROI: Is It Worth the Investment?
Published Apr 13, 2026 · 6 min read
The average US solar installation costs $20,000-$30,000 before incentives. With the 30% federal tax credit, that drops to $14,000-$21,000. But is it worth it?
Average Payback Period
| Region | Avg. Electric Rate | Sun Hours/Day | Payback |
|---|---|---|---|
| Southwest (AZ, NV, CA) | $0.15-0.25 | 5.5-6.5 | 5-7 years |
| Southeast (FL, TX, GA) | $0.12-0.15 | 4.5-5.5 | 8-10 years |
| Northeast (NY, MA, CT) | $0.20-0.30 | 3.5-4.5 | 6-8 years |
| Midwest (IL, OH, MI) | $0.12-0.16 | 3.5-4.5 | 9-12 years |
25-Year ROI
Solar panels are warrantied for 25 years (degradation ~0.5%/year). After payback, everything is profit. Most homeowners save $25,000-$50,000 over 25 years.
Go Solar If
- You own your home and plan to stay 5+ years
- Your roof gets good sun exposure (south-facing, minimal shade)
- Your electric rate is $0.14+/kWh
- Your state offers net metering or SRECs
Try it: Use our Solar Panel Calculator to estimate your system size, cost, and savings.