Solar OS & Software
What is payback period calculation?
Reviewed by SolvSolar · Last reviewed:
Payback period is turnkey system cost divided by annual electricity savings, giving the number of years until solar pays for itself. Annual savings equal system size in kW multiplied by effective yield in kWh/kWp after shade losses, multiplied by your electricity unit rate. Typical rooftop payback runs 3–6 years in high-tariff markets and 6–9 years elsewhere.