Will Solar Panels Pay For Themselves

The solar panel payback period is a calculation that estimates how long it will take for you to break even on your solar energy investment.

Will solar panels pay for themselves.

Solar incentives rebates and the federal tax credit. Socal bob has a daily energy use of 30kwh. The price of electricity is 0 13 kwh. He wants to meet 100 of his energy costs with solar panels.

The largest solar energy systems also save the most money but owners will need to wait for some time for the system to pay for itself. Solar systems in florida usually take about 8 9 years to pay for themselves. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. Below are the main factors that influence this timescale.

Increased utility electricity rates and lower equipment costs are making it easier and less expensive to for homeowners to own rather than lease their solar panel systems. The typical solar payback period in the u s. It depends on where you live how much energy you use and how much your utility bills were prior to installing you solar panel systems. As of june 2020 the average cost of a 6 kw home solar system is about 3 20 per watt or 19 200 before incentives.

Purchase and installation can vary from several thousand dollars to 15 000 or even 40 000 for the largest versions. Their price has come down their effectiveness has gone up and congress extended a 30 percent federal tax credit for installing them until the end of 2019. So how long do solar panels take to pay for themselves. In this example let s say the price for solar panels is higher in his area 4 w or.

The homeowner in our example will either need to pay cash or take out a solar loan for around that amount. If your cost of installing solar is 20 000 and your system is going to save you 2 500 a year on foregone energy bills your solar panel payback or break even point will be 8 years 20 000 2 500 8. Yes solar panels will be able to pay for themselves within their lifespan. However the time it will take to reach the payback time or the earnings that can be obtained are deeply varied and site dependent.

All of this means solar panels can now. You might think that there is a simple binary answer as to whether solar panels will pay for themselves but it is actually affected by a huge range of factors. Your overall electric usage. Is just above 8 years.

Some important factors that affect your repayment time are. How is the solar panel payback period calculated.