Blog Updated: June 2026
Sometimes we just need a visual to fully understand a concept. So, in this post we’re sharing an example of a solar cash flow table that we often include in solar proposals for residential customers. If you want to understand how solar panels save you money and how they pay for themselves over time, this post will walk through both.
Key Takeaways for How Much Solar Panels Save
- Save every month: Solar panels will save you money on your electricity bill every month, and over time a system can pay for itself.
- Own your power: With solar, you own your energy production, and the energy you produce goes towards lowering your utility bill.
- Payback period: Payback period takes the overall system price and divides it by the average projected solar savings each year to find out how long it will take for solar panels to pay for themselves.
- Colorado solar payback periods: We see an average payback period between 12-15 years.
How Much Money Do Solar Panels Save?
The savings from a solar panel system can be looked at on a monthly basis and over the lifetime of a system. Monthly savings will depend on how much energy you use and how much energy is offset by your solar system. We strive to design each system to offset as much of your electricity usage as we can, often offsetting 100%. Over the lifetime of a system, solar will pay for itself and then some. It’s not uncommon to see a system pay for itself twice over during its 30-year lifespan. That’s some great return on investment (ROI).
How Long is The Payback Period?
We explained how long it takes solar to pay for itself in a previous blog, but here’s a refresher. Before going solar, you pay your utility company for the electricity you consume in your home every month. You are also subject to utility rate increases, so your bill will likely go up year over year. Installing a solar system on your home changes the game; every time electricity rates rise, the value of your solar and the amount you save each month increases.
When the value of your savings equals the net cost of the solar system, it has paid for itself. The solar cash flow table shows how that process works in more detail and what we factor in to determine payback period. Keep in mind that the payback period is different for every solar installation depending on a variety of factors, but we tend to see an average payback period between 12-15 years in Colorado.
Some Key Factors That Affect Payback Period and How Much Money Solar Panels Save
- Overall system cost: A properly sized system will maximize your savings and return on investment (ROI). The average system size that we installed in 2025 was 8.8kW and the cost ranged from $25,000- $32,000.
- System size: Larger, more complex systems cost more up front. But the larger the system, the quicker the payback period is generally. These homes have higher electricity usage and are therefore saving more each month with solar.
- Electricity usage: Customers who use more electricity can benefit the most from solar. Instead of paying the utility company each month, these homeowners are building equity through solar.
- Array layout: The complexity of your solar array layout and installation has a big impact on the original cost of the solar system.
- Roof material: Certain roof materials are easier to install on and can affect the price of the installation.
- Solar incentives: There are incentives and rebates that lower your cost of going solar and increase your rate of saving.
An Example Cash Flow Table from One of Our Customers:
We’ll Walk You Through the Table Step by Step:
Solar might has an upfront cost, but when we look at this table, we see an opportunity to build energy equity (just like when you buy a house as an investment that can help build wealth over time). This table is from the quote of one of our customers who was installed in summer 2026.
The second column in the chart shows the yearly cost of utility bills this homeowner would be paying to the utility company. Due to inflation, these costs will continue to rise, and on top of basic inflation of costs, instability in the energy market can also increase prices. Citing infrastructure needs and increase in demand, Xcel requested approval to increase electricity rates in 2026 – they estimated that a typical residential customer might see their electricity cost jump up 10%. In addition to adding stability to your energy prices, homeowners with solar save more and reach their payback period sooner as electricity costs rise.
Column three shows the new yearly utility bill. All utility companies charge a connection fee to still be connected to the grid, so while your solar array can reduce the number of kilowatt hours you purchase from the utility, there will still be a small bill to the utility company on a monthly basis.
The fourth column shows the complete cost of the solar system and installation. For our homeowner in this example, the total cost was just over $34,000 for their system. We also factor in possible system maintenance costs in column five, just to be transparent about those potential maintenance needs.
Column six shows the gradual increase in annual savings that occur the longer the customer has had the system. These savings are simply calculating the [old utility bill with increasing electricity rates – new utility bill = yearly net savings and earnings].
Finally, we get to column eight, which shows the cumulative savings over the lifetime of the system. You can see when the column turns from negative numbers to positive in year 13; that is when the solar system has fully paid for itself. Of course the system will continue generating savings for the customer from then on, and every dollar saved after that goes straight into the homeowner’s pocket. With no tax on capital gains for their solar investment. After its 30-year lifetime, this system is expected to return approximately $91,000 in net savings!
Another Way to Look at It:
We often take for granted that an energy bill will show up from our utility company each month that we have to pay. It’s just a fact of life, right? Well, homeowners who go solar can take control of their energy costs and get out of this utility debt.
The graph above shows the difference in cost for our homeowner with solar and without. In this scenario, it would take 13 years of saving with solar before the system pays for itself and the cash flow becomes positive. From then on out, our homeowner is enjoying pure energy savings!
And if you don’t plan to stay in your home, that’s ok. Homes with solar sell for more than comparable homes without solar, recouping your costs and passing on a valuable asset to the next homeowner.
How Much Will Solar Panels Save at Your Home?
Want to see your custom proposal and know how much solar panels might save for your home? Talk to one of our non-commissioned solar experts today to get a no-pressure quote. It’s a great way to invest in your home, your wallet, and the environment.
To get started, give us a call at 303-536-8920 or click the button below.
