Online calculator
Solar Payback Calculator
Estimate when a solar system may pay back and how much cumulative financial benefit your PV project can generate over time.
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What does this calculator do?
Use this solar payback calculator to estimate when a photovoltaic system may become financially worthwhile. It combines investment cost, subsidy, annual electricity savings, feed-in revenue, ongoing operating cost and an assumed electricity price increase.
Formula
Net investment = Investment cost − subsidy Net benefit in year 1 = Electricity savings + feed-in revenue − operating and maintenance cost Net benefit in each following year = Electricity savings with price growth + feed-in revenue − operating and maintenance cost Payback = Point in time when cumulative benefit reaches or exceeds net investment Total profit = Cumulative benefit − net investment
Example
Example: A PV system costs €18,000 and receives a €2,000 subsidy, so net investment is €16,000. In year 1 the system saves €1,600 in electricity costs, generates €400 in feed-in revenue and causes €180 in ongoing cost.
What does this solar payback calculator estimate?
It shows net investment after subsidy, the financial benefit in year 1, estimated payback time, cumulative benefit over your chosen time horizon and total profit.
Why does electricity price growth matter?
When grid electricity becomes more expensive, the value of self-consumed solar power rises as well. That often improves project economics over time.
Frequently asked questions
When does a solar system usually pay back?
That depends heavily on installation cost, subsidy, self-consumption, electricity prices and ongoing cost. Rough payback periods often fall somewhere around 8 to 15 years.
Does the calculator include batteries?
Not separately. A battery may increase self-consumption, but it also adds cost.