Do Solar Panels Really Pay For Themselves

The price of electricity is 0 13 kwh.

Do solar panels really pay for themselves.

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. The financial benefits of going solar are now well documented. 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. Solar panels do pay for themselves but how long it takes depends on cost available incentives and your electricity rate.

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. Then through the average return it only takes four years to pay the remaining two thirds. Socal bob has a daily energy use of 30kwh. However there are many factors to consider.

Solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment. 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. For example if an average solar panel installation costs 18 000 incentives will lower this price by a third.

The solar module will almost certainly represent the largest single component of the. For a typical home the cost of your system can range from 20 000 to 30 000 to purchase and install. In this example let s say the price for solar panels is higher in his area 4 w or. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects.

Here s how to calculate 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. Understand your solar panel payback period. So how long do solar panels take to pay for themselves.

Purchase and installation can vary from several thousand dollars to 15 000 or even 40 000 for the largest versions.