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.

So how long do solar panels take to pay for themselves. Solar panels do pay for themselves but how long it takes depends on cost available incentives and your electricity rate. 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. However there are many factors to consider.

In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. Solar panels can save money but they can also come with high upfront costs. He wants to meet 100 of his energy costs with solar panels. Socal bob has a daily energy use of 30kwh.

Solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment. The price of electricity is 0 13 kwh. 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. The financial benefits of going solar are now well documented.

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. Understand your solar panel payback period. 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. 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.

Here s how to calculate payback period. Solar panels do pay for themselves much faster then people tend to predict before they look into it further. 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. In this example let s say the price for solar panels is higher in his area 4 w or.

For a typical home the cost of your system can range from 20 000 to 30 000 to purchase and install.