Do Solar Panels Pay Themselves Off

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

Do solar panels pay themselves off.

However the time it will take to reach the payback time or the earnings that can be obtained are deeply varied and site dependent. 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. Dividing 14 200 by 1 734 gives a solar payback period of about 5 8 years even if electric rates don t go up between now and then. Yes solar panels will be able to pay for themselves within their lifespan.

Solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment the solar module will almost certainly represent the largest single component. The efficiency is not a deterring factor because there is an unlimited supply of solar energy until the sun burns out in 5bn years. 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. Below are the main factors that influence this timescale.

Here s how the figures break down for cities in the. 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. 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. Investment cost and annual savings.

For example if an average solar panel installation costs 18 000 incentives will lower this price by a third. Allow us to explain how to do that. The efficiency of solar panels results in having to install more solar panels which is not a problem in itself since they will pay for themselves and produce less emissions than fossil fuels. 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.

If their solar panels were fully connected by september 2020 they d be paid off before the summer of 2026 and will keep making electricity until at least 2045. Years to payback investment cost solar panels annual savings. Then through the average return it only takes four years to pay the remaining two thirds. Factors such as solar panel costs incentives the type of solar panels and your location influence the payback period of your system.

That s what we d call a great deal. Whether you are interested in solar panels for a residential property or as a commercial installation it is inevitable to think about the profitability of the system and ask whether your panels will pay for themselves. What is solar panel payback period.