Average Time To Pay Off Solar Panels

Is just above 8 years.

Average time to pay off solar panels. Socal bob has a daily energy use of 30kwh. Here is a more detailed discussion on whether solar panels are worth it. In most states solar power is a solid investment that will result in a significant return over the next 20 to 30 years. A pv solar array may be very beneficial in areas where this sort of time varying rate is used since the solar power produced would offset the most costly electricity.

The price of electricity is 0 13 kwh. In this example let s say the price for solar panels is higher in his area 4 w or. There are also many state and local tax credits and incentives available throughout the country too many to list here. The typical solar payback period in the u s.

He wants to meet 100 of his energy costs with solar panels. With a solar payback period of between 4 10 years this represents a simple investment return of between 10 25. This credit drops to 26 in 2020 and 2021 22 in 2022 and then will drop to zero after that unless renewed again by congress. Average solar power payback period varies significantly based on where you live.

If your cost of installing solar is 20 000 and your system is going to save you 2 500 a year on foregone energy bills your solar panel payback or break even point will be 8 years 20 000 2 500 8. This is a significantly better return than the long term average returns for both shares or property. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. Comparing quotes from multiple solar installers can actually help you go solar with a shorter payback period than the national average.