Solar panel costs have dropped dramatically in recent years. Solar panel prices have decreased 80% , on average, over the past five years. In some regions, solar can generate electricity at a cost at or below the retail cost of power from utilities.
Get a FREE Solar Panel Cost Estimate
1. A solar technician from Renewable Energy Corporation will survey your property to gauge adequate sun exposure and roof space.
2. Next, we’ll review your energy bill to calculate your average electric costs and usage. This helps us determine how much you’ll save.
3. Our solar experts will explain how your home solar system will operate and review product warranties and guarantees.
4. We’ll break down the costs of your customized solar energy system and estimate the savings you’ll see in your energy bill.
5. Finally, we’ll show you how you can save money with tax credits, grants, and other incentives.
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Sign up for a FREE solar estimate by filling out the form at right, or by calling us:
Calculate Your Solar Power ROI
and Solar Panel Payback Period
Knowing how to calculate your potential return on investment from solar panels can make your purchasing decision easier.
When considering an investment in solar panels, it’s important to look at two calculations: Annual ROI and payback period. The ROI is how much return on your investment you’ll get each year. The payback period is the timeline for when your solar panels have paid for themselves.
Here’s a 6-step process for calculating your solar ROI and solar panel payback period:
- First, you’ll need to determine the total installed cost of a PV system. Your total installed cost factors in expenses (PV panels, installation costs, permits, etc.) as well as rebates, solar tax credits, and other incentives offered by manufacturers or federal, state and local governments.When you hire Renewable Energy Corporation, we handle all the paperwork to claim all government incentives for solar in Maryland, so you can avoid the hassles and pitfalls. More on that later.
To request an estimate of solar panel costs for installing solar panels, complete our FREE estimate request form.
- Next, determine how much electricity your solar panels will generate. This will vary day-to-day, of course, and depends on the installed capacity of your PV system. This is the maximum amount of electricity your panels are capable of generating.Renewable Energy Corporation will calculate the amount of electricity you can expect to generate based on the installed capacity of your solar system, the placement of your panels, the amount of sunlight exposure you receive, and other factors. Click here to get started.
- Third, determine your average electric costs. Look on a recent electric bill from your utility company to determine how much you pay per kilowatt hour (kWh). The average cost of electricity in Baltimore is $0.15/kWh. If you need help calculating your electric rate, your Renewable Energy Corporation installer or sales rep can help.
- Calculate the total financial benefit of your solar power system. This will include a lower monthly electric bill, and will also include any SRECs you can sell to the utility company. Selling SRECs to the utility company helps them meet their renewable energy requirements and is a great way to generate additional revenue with your solar panels.
- Calculate your solar panel payback period and return on investment. Your payback period would be the initial net investment divided by the yearly benefit. For example, if your installed solar panel costs were $15,000 and your yearly benefit was $3,000, your payback period would be five years.
- The return on investment in solar is calculated by dividing your upfront investment into the yearly benefit. A typical 5 kW solar PV system can easily see an ROI of 20% in the first year.
If you’re curious how much solar panels will cost, or if you’d like to know when your PV panels will pay you back for your investment, request an estimate. We’ll ask you a few questions about your current electric bills, so have your latest electric bill handy.
Calculate Solar Panel ROI
Disclaimer: The return on investment in solar panels varies depending on the installation costs of your system, incentives you receive, how much electricity you generate with your system, the electric rates in your area, and other factors. This worksheet will help you calculate the ROI of solar panels. For help gathering this information, call us:
|Solar Panel Installation Costs:||TBD $_________|
|30% Federal Incentive||-$6,000|
|MD State Incentive ($1000)||-$1,000|
|Local Incentives (vary)||-$1,000 (estimate)|
|System generates:||TBD (kWh) _________|
|Electricity Savings @ $.15/kWh||$ ____|
|Total Annual Benefit||$_____|
|Payback period on initial investment||_____ years|
|Year 1 Return on Investment (ROI)||_____%|
|Average Stock Market ROI||4.1%|