Our Methodology

Data Sources

Our data comes from publicly available government and industry sources:

• Federal Incentives: U.S. Department of Energy (energy.gov), IRS guidance on the Investment Tax Credit (ITC) under the Inflation Reduction Act (IRS.gov).
• State Incentives: Database of State Incentives for Renewables & Efficiency (DSIRE), state energy office publications.
• Utility Policies: Individual utility company tariff filings, public rate schedules, and interconnection guidelines.
• Solar Irradiance: National Renewable Energy Laboratory (NREL) solar resource data and PVWatts calculator methodology.
• Installation Costs: EnergySage marketplace data, NREL annual solar cost benchmarks, and Lawrence Berkeley National Laboratory reports.
• Electricity Rates: U.S. Energy Information Administration (EIA) state and utility rate data.

How We Calculate Savings

System Production

We estimate annual solar production using: Annual kWh = System Size (kW) × Peak Sun Hours × 365. Peak sun hours vary by location and represent the number of hours per day when solar irradiance averages 1,000 W/m². Data sourced from NREL solar resource maps.

Annual Savings

Annual electric bill savings are calculated as: Annual Savings = Annual kWh × Local Electricity Rate. We use current average residential rates from the EIA State Electricity Profiles.

Incentive Stacking

We calculate total incentives by combining: the 30% federal ITC (per IRS guidelines), applicable state tax credits, state rebates, SREC income, and property/sales tax exemptions. Each incentive is applied to the appropriate cost basis per DOE guidance.

Net Cost & Break-Even

Net cost equals gross system cost minus all incentives. Break-even year is when cumulative electricity savings exceed the net system cost.

20-Year Projection

Our 20-year savings estimate uses current electricity rates held constant. Actual savings may be higher if rates increase, which they historically have at 2-3% annually per EIA data.

Editorial Review Process

All content on SolarSavingsAI undergoes a structured review process:

• Data Verification: Cross-referenced against at least two authoritative sources (DOE, IRS, DSIRE, NREL, EIA).
• Calculation Audit: ROI projections validated against NREL PVWatts benchmarks.
• Regular Updates: Content reviewed quarterly for accuracy against current incentive programs.
• Corrections Policy: Errors are corrected within 48 hours of identification.

Limitations & Disclaimers

• All estimates are approximate and based on averages. Your actual results will vary based on roof orientation, shading, system design, and specific equipment.
• We do not account for electricity rate escalation, panel degradation (typically 0.5%/year), or inflation in our baseline projections.
• Incentive programs change frequently. Always verify current availability with your state energy office, utility, and tax professional.
• This site does not provide financial, tax, or legal advice. Consult qualified professionals before making purchase decisions.

Update Frequency

• Federal incentives: Updated when legislation changes (source: energy.gov)
• State programs: Reviewed quarterly (source: DSIRE)
• Utility policies: Reviewed quarterly
• Installation costs: Updated semi-annually (source: NREL)
• Electricity rates: Updated annually (source: EIA)