Solar Payback Calculator 2026

The average solar payback period in the US ranges from 6 to 12 years, depending on your state, electricity rate, and system cost. States with high electricity rates like California (32 cents/kWh), Hawaii (43 cents/kWh), Massachusetts (28 cents/kWh), and Connecticut (27 cents/kWh) typically see payback in 5-8 years. States with lower rates like Idaho, Washington, and North Dakota may take 12-18 years. Note: the federal residential ITC (Section 25D) was repealed in early 2026; payback now depends on state-level incentives and electricity savings only.

Yes, adding a battery typically extends the payback period by 2-5 years because batteries add $8,000-$15,000 to the system cost while providing limited additional savings for grid-connected homes. However, batteries previously qualified for the 30% federal residential ITC (Section 25D, repealed Q1 2026); they can save money in states with time-of-use rates (like California) by storing cheap solar energy and using it during expensive peak hours. For off-grid homes or areas with frequent outages, batteries provide essential value beyond pure financial payback.

No — Section 25D, the 30% federal residential Investment Tax Credit (ITC), was repealed in early 2026 (One Big Beautiful Bill Act). New residential solar installations no longer qualify for the federal credit. Homeowners who installed solar before the repeal date can still claim the credit for the tax year their system was placed in service. Commercial solar projects continue to receive the 30% ITC under Section 48/48E through 2032, but that section does not apply to residential rooftop installs.