The average payback time for solar panels is between 5 and 15 years in the United States, depending on where you live. How quickly your solar panels reimburse their cost depends on how much you paid, the price of your utility's electricity, and the initial and ongoing incentives available. While the average payback period for solar panels is in the range of eight to 12 years, this can vary quite a bit from home to home. For some, it may be as little as five years.
For others, it can last up to 15 years. Local electricity costs and state-specific financial incentives, such as tax credits, solar rebates or net metering programs, are determining factors. One way to determine if you're getting a good return on your investment in solar energy is to analyze the entire life of your system. From then on, any money you save as a result of using those solar panels can be considered almost a profit.
Beyond the breakeven point, every month that you operate your solar system can be considered a financial gain. Investing in solar energy is an important and quite overwhelming step, and it's right to consider all the implications before making the decision. While solar panels are still just as environmentally friendly and are still a reliable off-grid energy solution, they are now seen first and foremost as a financial investment or as a vehicle for long-term savings. When combined with the federal solar investment tax credit (ITC), initial energy savings can offset more than a third of the total cost of a system before requiring a one-dollar down payment.
While it's impossible to calculate the exact payback period of your solar panel, getting a quote from an installer will allow you to make a fairly accurate and well-informed estimate. The length of the payback period for your specific solar panels will depend on a variety of factors, such as the price you paid for the solar panels, the tax incentives you requested, the amount you save by avoiding paying for electricity, and even where you live. We like Blue Raven Solar because it understands that, for most homeowners, the cost of solar energy represents the biggest obstacle to entry. The financial benefits of installing solar panels are becoming more and more obvious to many Americans.
ADT Solar sets the industry standard for warranty coverage by including a multi-faceted warranty, making it one of the best installers for homeowners who want more peace of mind. While the exact time it will take for solar panels to pay for themselves will depend on a variety of factors, the main conclusion is that solar panels are an excellent investment.