Since solar panels cost a lot of money upfront, it’s worth crunching the numbers to see how much money you’ll save. Don’t take your panel manufacturer’s word for it: do the math yourself based on your actual home energy usage.  If you invest in a system that can meet all of your home energy needs, simply multiply your electricity rate by your total energy usage in a given period.  The average customer uses 10,632 kWh of electricity per year, according to the EIA. As such, multiply that by your electricity rate (let’s say it’s 15 cents per kWh), and you’d be saving a total of $1,595 per year. If your solar panel installation cost $10,000, you’d earn back the solar panel cost in just over 6 years.  It gets a little more complicated if your panels only provide some of your energy, or if you sell energy back to your electric company with net metering. You may need more information, such as your seasonal energy usage, to calculate your solar savings.