How is the payback period calculated?
Divide the installation cost by annual electricity savings. For example, 24,000 ÷ 2,000 per year equals 12 years.
MossMeter tool
Solar Payback Calculator
Estimate how many years it takes for annual electricity savings to equal an installation cost. The result uses only the amounts you enter.
Solar figures
Enter both amounts in the same currency. Currency symbols are omitted.
Enter the total installation cost. Zero is valid.
Enter the installation cost.
Enter the amount saved over one year; it must be greater than zero.
Enter annual electricity savings.
Payback period
Payback period is installation cost divided by annual electricity savings. This is a simple estimate based on the values entered. With zero annual electricity savings, there is no finite payback period.
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Calculation
Enter installation cost and annual electricity savings in the same currency. Annual savings must be greater than zero; installation cost can be zero.
Payback period (years) = installation cost ÷ annual electricity savingsFrequently asked questions
What should I enter for installation cost?
Enter the total installation cost you want to compare with savings. The calculator uses the amount as entered.
What counts as annual electricity savings?
Enter the amount saved over one full year. It must be greater than zero.
Do I need to enter a currency symbol?
No. Use the same currency for both amounts; currency symbols are omitted. Zero installation cost is allowed, but annual savings must be positive.
What can make actual payback different from this estimate?
The calculation uses one cost and one fixed annual-savings amount. It does not separately model changes in system output or electricity prices, maintenance, financing, or incentives, so actual payback can differ.