How Much Can You Save with Off-Grid Solar?
- The average US household saves $1,200–$2,400 per year by eliminating their electricity bill with solar.
- Over 25 years, factoring in electricity rate increases, total savings typically reach $40,000–$90,000.
- Remote properties replacing generators save the most — often $3,000–$8,000 per year.
- Van and RV solar saves $400–$800/month in campground fees for full-timers.
- Savings are locked in — unlike the stock market, electricity you don't buy is a guaranteed return.
Savings calculator
Savings by scenario
Replacing a utility electricity bill
The most common scenario. The average US household pays $137/month ($1,644/year) for electricity. With electricity rates increasing historically at 3–4% per year, that same household will pay approximately $2,900/year by year 25 — before inflation adjustments.
| Monthly bill | Year 1 savings | Year 10 savings | Year 25 savings | 25-yr total |
|---|---|---|---|---|
| $80/month | $960 | $1,380 | $2,200 | ~$38,000 |
| $150/month | $1,800 | $2,590 | $4,100 | ~$71,000 |
| $250/month | $3,000 | $4,320 | $6,850 | ~$119,000 |
| $400/month | $4,800 | $6,900 | $10,950 | ~$190,000 |
Assumes 4% annual electricity rate increase. Gross savings before system cost.
Replacing generator fuel
Remote properties running propane or diesel generators see the fastest payback — often under 3 years. Generator economics in 2026:
- Propane generator: $0.15–$0.25/kWh equivalent fuel cost
- Diesel generator: $0.20–$0.35/kWh equivalent
- Full-time generator (3,000 Wh/day): $350–$600/month in fuel
- Annual generator fuel savings with solar: $4,200–$7,200/year
- Payback on $10,000 system: 1.5–2.5 years
RV and van: campground fees
For full-time RVers and van lifers, solar savings come primarily from eliminating campground hookup fees:
- Full hookup campground: $35–$60/night → $1,050–$1,800/month
- Electric-only site: $20–$35/night → $600–$1,050/month
- With solar: stay at free dispersed camping sites indefinitely
- Annual savings for a full-timer: $5,000–$15,000
- Payback on a $2,500 van solar system: 2–6 months
The inflation hedge argument
Beyond raw savings, off-grid solar provides something rare: certainty about a major future expense. US electricity rates have increased an average of 3–4% per year for the past 20 years. Some years the increase is higher — 2022 saw 14% increases in some markets.
Once your solar system is paid off, your electricity cost is effectively zero — regardless of what utility rates do. In a world of rising energy costs, locking in zero electricity cost is a form of inflation protection that a savings account can't provide.
What reduces your savings
- Financing costs: A 7% loan on a $15,000 system over 7 years adds ~$3,700 in interest. Still profitable but reduces net savings.
- Replacement costs: Budget for battery replacement (~$4,000–$8,000 at year 12) and inverter (~$500–$1,500 at year 12). See our component lifespan guide.
- Maintenance: ~$150–$300/year for cleaning, minor consumables and occasional repairs.
- Low electricity rates: At $0.09/kWh (Louisiana, Utah), payback is slower than at $0.25/kWh (California, Connecticut).
Frequently asked questions
How do I calculate my personal savings accurately?
Use our full ROI calculator which includes component replacement costs, financing costs and year-by-year breakdown. The calculator above gives a quick estimate — the ROI calculator gives a complete financial model.
Are solar savings taxable income?
No. Electricity you generate and use yourself is not taxable income — it's simply an avoided expense. Net metering credits on grid-tied systems are also not taxable. The IRS has confirmed that residential solar energy generation does not create taxable income.
What if electricity rates don't increase?
Even at flat electricity rates, most off-grid systems still show positive returns over 25 years. The break-even just takes longer. Given the 20-year track record of steady electricity rate increases, flat rates for 25 years is the unlikely scenario — but even in that case, most systems in moderate-to-high rate states pay back within 10–12 years.