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Solar Payback Calculator
When does rooftop solar pay for itself in your home? Defaults are the latest Meralco rate (₱14.33/kWh) and a typical residential install (₱50K/kWp). Edit any number; the 25-year cashflow updates in real time.
Your system
Advanced assumptions
Defaults reflect a mid-tier residential install in Metro Manila. Edit every input — the math updates as you type.
Payback period
3.1 years
Effective annual return (IRR): 33.5%
Total install cost
₱280,000
Year-1 production
7,358 kWh
Year-1 savings
₱86,993
25-year savings
₱2,965,715
Net profit after install cost
₱2,685,715
Year-by-year cashflow
| Year | Production (kWh) | Savings (PHP) | Cumulative (PHP) |
|---|---|---|---|
| 1 | 7,358 | ₱86,993 | -₱193,007 |
| 2 | 7,322 | ₱89,155 | -₱103,853 |
| 3 | 7,285 | ₱91,370 | -₱12,482 |
| 4 | 7,249 | ₱93,641 | ₱81,158 |
| 5 | 7,212 | ₱95,968 | ₱177,126 |
| 6 | 7,176 | ₱98,352 | ₱275,478 |
| 7 | 7,140 | ₱100,796 | ₱376,275 |
| 8 | 7,105 | ₱103,301 | ₱479,576 |
| 9 | 7,069 | ₱105,868 | ₱585,444 |
| 10 | 7,034 | ₱108,499 | ₱693,943 |
| 11 | 6,999 | ₱111,195 | ₱805,139 |
| 12 | 6,964 | ₱113,959 | ₱919,097 |
| 13 | 6,929 | ₱116,790 | ₱1,035,888 |
| 14 | 6,894 | ₱119,693 | ₱1,155,580 |
| 15 | 6,860 | ₱122,667 | ₱1,278,247 |
| 16 | 6,825 | ₱125,715 | ₱1,403,963 |
| 17 | 6,791 | ₱128,839 | ₱1,532,802 |
| 18 | 6,757 | ₱132,041 | ₱1,664,843 |
| 19 | 6,724 | ₱135,322 | ₱1,800,165 |
| 20 | 6,690 | ₱138,685 | ₱1,938,850 |
| 21 | 6,656 | ₱142,131 | ₱2,080,981 |
| 22 | 6,623 | ₱145,663 | ₱2,226,645 |
| 23 | 6,590 | ₱149,283 | ₱2,375,928 |
| 24 | 6,557 | ₱152,993 | ₱2,528,920 |
| 25 | 6,524 | ₱156,795 | ₱2,685,715 |
Defaults reviewed 2026-05-18
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How it works
We start with year-1 production: kWp × sun-hours × 365 × derate. Sun-hours
is the PH long-term average of usable daylight (4.5h is standard). The derate captures
inverter, soiling, temperature, and cable losses — NREL convention is 0.80.
Each year, production drops by the degradation rate and the electricity rate rises by the escalation rate. Self-consumed kWh save the full retail rate; exported kWh earn the net-metering credit ratio (generation charge only).
We track cumulative cashflow against the install cost and report the year the cumulative crosses zero — that's your payback. The 25-year cashflow table lets you sanity-check every assumption.
§ 03
Frequently asked questions
What's a realistic payback period for rooftop solar in the Philippines?
For a Metro Manila homeowner on the latest ₱14.33/kWh Meralco rate, a properly sized 5–6 kWp system typically pays back in 3–4 years. Provincial cooperatives charge less per kWh, so payback there often runs 5–7 years. The biggest variables are installed cost (₱40–60K/kWp) and how much daytime electricity you actually consume — not the size of your roof.
Why does self-consumption matter so much?
Under PH net metering, electricity you use in real time saves the full retail rate (currently ~₱14.33/kWh in Meralco). Excess electricity you export to the grid is credited at the generation charge only — roughly half the retail rate. A household that runs aircon and laundry during the day extracts far more value from solar than one that's mostly empty until evening.
Is the 25-year panel life realistic?
Yes. Tier-1 monocrystalline panels carry 25-year linear performance warranties guaranteeing 80–85% output at year 25. Real-world degradation has been 0.3–0.5%/year for most panels installed over the last decade. The inverter is the weak link — expect to replace it once around year 10–15 (₱30–80K depending on system size).
Should I add batteries?
Usually not for payback math. Lithium batteries add ₱30–50K/kWh of usable storage and rarely pay back inside 25 years on Meralco rates alone. They make sense if (a) you have frequent brownouts you need to ride through, or (b) you're in a zero-export net-metering setup where exports are wasted. Otherwise, batteries are a comfort upgrade, not an ROI play.
What's net metering and do I need to apply?
Net metering lets you export surplus solar to the grid and receive credit on your bill. Yes, you must apply through Meralco (or your local distribution utility) before energizing. The process takes 4–8 weeks and requires a licensed installer. Most reputable installers handle the paperwork as part of their package.
Does this save or transmit my data?
No. Everything runs in your browser. We don't collect, store, or transmit any of your inputs.
§ refs
Sources & references
From official issuer, regulator, and data-provider sites. Verify any figure against the primary source before acting on it.