Do Solar Panels Really Pay For Themselves

Then through the average return it only takes four years to pay the remaining two thirds.

Do solar panels really pay for themselves.

Understand your solar panel payback period. Here s how to calculate payback period. The solar module will almost certainly represent the largest single component of the. Solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment.

He wants to meet 100 of his energy costs with solar panels. Solar panel systems actually function as investments with strong rates of return and homeowners generating solar electricity can avoid paying increased utility rates by eliminating their electricity bills. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. The financial benefits of going solar are now well documented.

In this example let s say the price for solar panels is higher in his area 4 w or. 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. For example if an average solar panel installation costs 18 000 incentives will lower this price by a third. 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.

There s no denying that solar panels are a long term investment but given the potential for both saving money on energy bills and earning from the energy you put back into the system solar panels can actually pay for themselves over a period of time. So how long do solar panels take to pay for themselves. If you do not live in a forest get a quote and make sure each of the above points is explained to you so you know exactly how the solar system pays itself back and for how long. Purchase and installation can vary from several thousand dollars to 15 000 or even 40 000 for the largest versions.

The price of electricity is 0 13 kwh. However there are many factors to consider. Solar panels do pay for themselves but how long it takes depends on cost available incentives and your electricity rate. Depending on the system s efficiency and the amount of energy being used solar panels can pay for themselves in as little as four years.

Solar panels can save money but they can also come with high upfront costs.