Payback period
The number of years it takes for a solar system's electricity savings to equal its net cost.
Payback is your net system cost divided against annual savings, accounting for rising power prices and slight panel degradation each year. With the 25D federal credit gone, cash and loan buyers in 2026 typically see paybacks of about 7–9 years in high-rate, high-sun states, 10–13 in average ones, and 15+ where rates or sun are poor. Since panels are warrantied ~25 years, even a 12-year payback leaves a decade-plus of cheap power.
Put it to work
See also