Does Solar Panels Pay For Itself

Photovoltaic solar power.

Does solar panels pay for itself.

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. In plymouth it takes only 8 4 years for a domestic solar panel installation to pay for itself compared with the national average of 9 5 years. Solar panels do pay for themselves but how long it takes depends on cost available incentives and your electricity rate. Solar panels can save money but they can also come with high upfront costs.

18 166 0 3 x 18 166. 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. Purchase and installation can vary from several thousand dollars to 15 000 or even 40 000 for the largest versions. The monthly cost savings of switching to solar can amount to how much you pay for your system over time.

And you can determine exactly how much your system is saving and earning you. The average solar payback period or break even point in the u s. It might sound too good to be true but in many cases this is exactly what happens. 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.

To calculate your solar panel payback period roi you need to determine the combined costs and annual benefits of going solar. It does put power back in the grid and you get a credit he says. Unlike other purchases solar does. Previously he d installed a heat pump to reduce energy consumption.

Here s how to calculate payback period. Skeptics scoff when told that solar electric systems pay for themselves. Subtract the federal tax credit which saves you 30 of the solar system price. Here s how the figures break down for cities in the.

Photovoltaic pv solar technology has been around since the 1950s but thanks to declining solar module prices it has only been considered a financially viable. Thus investment cost 6 2kw x 2930 kw 30. Is just under 8 years. According to a 2016 solar installation cost benchmark from nrel the average price of solar panels is around 2 93 w equal to 2930 kw as 1000 watt equals 1 kilowatt.

However depending on where you live your panels can pay for themselves in as quickly as 5 years.