Savings and payback
Levelized cost of energy calculator
Get the fullest per-kWh cost picture by including ongoing maintenance alongside your system cost, divided across total lifetime production.
Current status: the 30% federal residential solar tax credit (Section 25D) expired for systems placed in service after December 31, 2025. If you're buying with cash or a loan in 2026 or later, use your full system price with no credit subtracted. Only subtract 30% if your system was placed in service by the end of 2025.
How it works
Three steps to your LCOE
Step 1
Enter your net cost and production
Use figures after incentives. Not sure of your production? The solar savings calculator can estimate it.
Step 2
Add an annual maintenance estimate
Use 0 for a best-case baseline, or a realistic figure from $100 to $300 a year for a fuller picture.
Step 3
Pick degradation and horizon, then compare
The tool adds total maintenance to your net cost, then divides by total lifetime production. Compare the result against the simpler cost per kWh calculator to see maintenance's exact impact.
Understanding levelized cost of energy
What maintenance adds to the picture
For a $22,000 system with $150 a year in maintenance over 25 years, LCOE comes to about $0.115 per kWh, compared to $0.099 per kWh without maintenance included, as shown on the cost per kWh produced calculator. That's a meaningful difference, roughly 17% higher, even though it's still well below a typical utility rate. The US Energy Information Administration's solar explainer covers how solar generation works and where it fits in the wider grid.
What counts as typical maintenance
Most residential systems run $100 to $300 a year for periodic inspection, cleaning, and minor repairs, though many systems need little to no maintenance in a given year. This is separate from major one-time costs like inverter replacement, which the inverter replacement cost tool handles instead. For the official overview, the US Department of Energy's homeowner's guide to going solar covers buying, leasing, and system sizing.
Why this tool doesn't include inverter replacement
Inverter replacement is typically a one-time expense around year 10 to 15, not an annual cost, so folding it into a per-year maintenance figure would distort the timing. See the inverter replacement cost calculator for a version that accounts for that specific expense properly. To size the array behind this number, the system size by annual kwh usage turns your usage into a kilowatt target.
Using zero maintenance as a baseline
Setting maintenance to zero reduces this tool to the same math as the simpler cost per kWh calculator, useful as a best-case reference point before layering in realistic ongoing costs. This estimate assumes normal upkeep, and the maintenance cost vs savings net calculator breaks down what that upkeep costs year by year.
Questions
Frequently asked
LCOE adds ongoing maintenance costs into the total before dividing by lifetime production. For a $22,000 system with $150 a year in maintenance over 25 years, LCOE comes to about $0.115 per kWh, compared to $0.099 per kWh without maintenance included.
Most residential systems run $100 to $300 a year for periodic inspection, cleaning, and minor repairs, though many systems need little to no maintenance most years. This figure doesn't include major one-time costs like inverter replacement.
Not in this calculator. Inverter replacement is typically a one-time cost around year 10 to 15 rather than an annual expense, so it's handled separately by the savings calculator with inverter replacement cost included, which nets that specific cost out instead.
Yes, setting maintenance to zero makes this calculator identical to the simpler cost per kWh produced calculator. Use zero as a best-case baseline, then add a realistic maintenance estimate to see how much it changes your effective cost per kWh.