Solar Panel Payback

Provided you ve not already bought your panels all you need to do is two simple calculations.

Solar panel payback.

Factors affecting solar payback range. The simple payback method calculates the number of years it will take for your solar system to pay for itself. The speed of solar payback depends on several factors every solar pv installation is customized to a business specific energy and financial requirements so no two systems are alike nor are their payback periods. Available tax incentives and state rebates.

Allow us to explain how to do that. Total solar panel system cost 15 000. Regardless of the exact cost of installation there are many affordable financing options for solar panel systems. As you can see these factors can affect the payback range largely depending on where in the country a solar customer lives.

Is just above 8 years. It is calculated by taking the total cost to install the system then subtracting solar incentives and or rebates and monthly electric bill savings until the total cost has been paid off. How is the solar panel payback period calculated. 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.

Free federal tax credit guide. The exact payback period depends on a number of different factors including. The solar payback period refers to the amount of time it takes for the electric bill savings from your solar panels to equal the amount you paid for the system. Residential solar system payback period 14 800 1 374 43 10 8 years.

Price for utility electricity. How to calculate solar payback the average american household pays a monthly electric bill of 118 36. The average payback period for a residential solar system in 2020 is about seven years. Investment cost and annual savings.

Solar panel payback period is the amount of time it ll take you to completely pay off your solar power system through savings on your electric bill. A payback period of 10 8 years is actually above the average across the united states. Investment cost of your solar panels. According to a report from the national renewable energy laboratory nrel the average payback period in the united states is between 6 and 8 years.

A solar payback period is the amount of time it takes for property owners who install solar panels to recover their initial investment through electricity savings. Amount of daily sun light hours. In pennsylvania the average solar payback period is 10 66 years. Simple payback for solar panels.

In the example above if 10 000 is the cost of the solar panels and you save 83 33 per month in electricity costs 1 000 per year you will have a 10 year payback. The typical solar payback period in the u s.