One of the most important considerations for homeowners looking to invest in solar energy is the so-called “solar payback period”. This is the amount of time it takes to recoup the initial investment. After all, one of the most valuable advantages of solar, is that it pays for itself over time.
Indeed, letting people know they soon they’ll get their money back is a great way to encourage the move into renewable energy. Similarly, the long-term financial benefits are one of the main reasons driving homeowners to adopt solar power. While living more sustainably on its own is a worthy endeavor, the financial aspect definitely gives a most helpful boost.
That said, we can see why knowing the solar payback period is essential for any potential investor in solar. In fact, along with the cost and how much power the system will generate, this number is among the first people want to know.
How do we determine a solar payback period?
There are a few steps to determining the number of years to complete solar payback. Firstly, one computes the upfront costs, including any financing considerations. Secondly, one calculates the cumulative savings one will make on electric bills. Generally, this won’t give an absolute number. This is because costs and valuations change constantly, but the ballpark figure is good for decision-making.
In the US, homeowners can expect solar payback periods in the range of 6 to 12 years. However, there are many different factors that can affect this calculation, and we’ll get to those in a bit.
Although this is a fairly long period, a solar power system will last much longer than this. For example, warranties are usually in place for over 20 years. This means you will recoup the cost of your system many years before the warranty expires. Thus, anything in excess of the solar payback period is money in the bank from your solar power system.
Factors that impact solar payback periods
To begin with, the type and size of the solar panel system is of course the major consideration. Naturally, costs of panels and systems also vary by location, so this will affect the computation.
Moreover, different locations will also yield different performance and efficiency figures. Subsidies and rebates are also dependent on your area and state. In order to get a more accurate estimate, make sure you ask your solar panel installer. They will know how to compute your home’s specific potential solar payback period.
Newer technology reduces the solar payback period
There are constant improvements in PV technology and all work towards making solar systems better. These result in solar power systems lasting longer, while also making solar payback periods potentially shorter.
Contact the experts to answer your questions
The experts will assist you to estimate the solar payback period accurately and efficiently. Once you have this information, you will have a clearer idea of whether investing in solar panels is right for your home.
To summarize, on top of the energy savings, you will also make your home a more sustainable one. Plus, there is the security that comes with having your own solar PV system independent of the commercial grid.
Contact Renewable Energy Corporation, Maryland, DC’s premier solar power installers today, and start learning more about the ways you can save!
The US Utility Sector is experiencing massive power demands due to the COVID-19 pandemic. Disruptions could occur at any time.
With a properly installed Solar power supply:
- Your electricity feed will remain secure
- If the power goes down, you won’t be left in the dark
- All essential appliances will continue to work
- Wi-fi and internet connections will remain operational
- You will be unaffected by the inevitable increases in utility costs
- Remain safe and secure while continuing to work from home
Play a role in benefiting the environment by switching to economical, clean and renewable Solar power for your home or business. Get a no-obligation free estimate today!
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