Solar Payback Periods

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We often get questions about the “payback period” on solar investments. At ReVision, we believe it’s important to take a holistic approach to evaluating the value of solar. Keep in mind that solar has been proven to increase home resale value, and is a more reliable investment than the stock market.

So while “payback period” shouldn’t be the only metric we discuss, we understand it’s a frequent topic of conversation. We show all of these numbers in our proposals (and more), to help you fully understand the long-term savings potential and wealth creation that renewable energy offers. Put simply, your solar payback period is the amount of time it takes for you to “break even” on your solar investment. This means calculating the time it takes for you to save as much on your electric bills as you spent on your solar energy system.

2026 and Beyond

Although the federal tax credit for solar has been taken away, the solar payback period is actually the same – if not better – than it was five years ago. The cost of solar technologies has dropped 75% in the last ten years, while the cost of electricity has increased exponentially. (This is due to a number of factors including natural gas prices, increased storm damage, and aging transmission lines – check out our recent blog post for a deep dive into electricity rates).

Relying on your utility for 100% of your electricity means you have no protection from their increasing rates, which have more than doubled over the past 20 years in New England. With a solar investment, you pre-buy your own clean electricity, which means your “solar electric rate” can only go down over time; the longer you use it, the cheaper each individual kWh becomes. Instead of worrying about electricity rates rising, go solar for a fixed amount and benefit from reliable, clean electricity for decades to come.

Our co-founder Fortunat Mueller was recently interviewed about this on Maine Public:

The fundamentals and economics of rooftop solar for residential customers are still really really strong. There are forces making it a stronger, better investment even than it has been in the past. We’re finding that customers signing up for 2026 installations are getting just as good a deal overall in terms of lifetime value for their systems.

The cost of electricity is going up at an accelerating pace, and there are a number of factors playing into that. So for a homeowner thinking about generating some of their own electricity on the roof, the argument for solar (in terms of increasing grid costs and decreasing reliability), is stronger than ever.”

Below are examples that prove this argument, pulled from real proposals, designed in August 2025 by our local Solar Designers. These projects will be installed in 2026, meaning they do not include the former federal tax credit. Our proposals include everything from panel degradation to utility cost increases, and our projections tend to be conservative.

Maine:

Here’s another recent example from a customer in Maine, we’ll call her Laura. Laura has four kids living at home, heat pumps, an electric vehicle, and a swimming pool – her family uses a lot of electricity. Her average monthly electric bill in 2025, at CMP’s current rate of $0.24/kwH, is $450. If she does nothing, and electric prices rise a conservative 5%, Laura can expect to pay $257,500 over the next 25 years.

Laura’s solar array will cost about $42,000 total. Because of her roof orientation and shading, her array will only offset 65% of her home’s electric load, so she will continue to pay CMP for some electricity every month. This is still a huge financial win for Laura and her family:

Her solar “payback period” is 10 years, and she will pay an equivalent of $0.10/kWh – less than half of what she was paying to CMP in 2025.

Laura’s total net savings with solar over 25 years? $116,000.

Massachusetts:

Our Massachusetts customer, Alex, has an even better payback period: 7.7 years. Alex’s currently monthly electric bill is $154, meaning she can expect to pay $108,000 to National Grid in 25 years if her usage stays the same. But Alex is planning to get an EV in a few years, and is also considering switching to air source heat pumps – both of which will increase her electric bill.

We designed a rooftop solar array for Alex that will actually cover 115% of her current electric usage, leaving room for her future EV and heat pumps. Her total project cost will be $22,500, but unlike our other states, Massachusetts does have state-specific incentives, bringing her cash investment to roughly $18,900. She’ll earn that back in utility savings in just 7.7 years and will have saved over $101,000 in 25 years (not to mention the money she will save on gas by switching to an EV and heat pumps).

New Hampshire:

Let’s call this customer Simon. Simon currently pays an average of $143/month for electricity from Eversource. Based on our conservative projections for utility increases, Simon can expect to pay $81,900 to Eversource over the next 25 years.

A solar array on his roof will cost Simon $23,734, but the energy generated from those panels will almost entirely cover his home’s usage. Simon can either pay for the solar project in cash now, or take out a loan. Even after he pays the interest on the loan, Simon will ultimately be saving over $50,000 on energy costs for the next 25 years.

His solar “payback period” – the time it takes him to recoup his initial investment – is 10 years, meaning he will get 15+ years of nearly-free electricity.