What is your solar panel ROI (return on investment)? Believe it or not, those solar panels pay for themselves. How long does it take to pay back your solar system? Or how long is it till you break even on your investment in solar? Well, today, we’ve got the answer for you.
Green Power Energy has been leading the industry in solar installations for over 15 years. We have seen various paybacks on installing solar panels in many states, including the ones we currently work in, which are Pennsylvania, New Jersey, Connecticut, and Texas.
What Is The Return on Investment (ROI) For Solar Panels?
The solar panel ROI is dependent on two things: the actual cost of having to install solar panels, as well as the incentives and payback in your local market. Installing solar panels is going to save you more money if the electricity bills cost more in a particular area, like in Connecticut and South Jersey. So, the payback for the solar panels is going to be quicker compared to some areas like Texas, or other parts of the country where electricity bills might only cost a third of what it costs in Connecticut and New Jersey. Now, let’s go over how you can calculate your solar panel payback period.
Solar Payback Period for Purchasing a Solar System Out of Pocket
If you pay out of pocket for a solar power system, your typical solar panel payback period is going be about 5 years from your initial investment. This can also take less than 5 years if your home has an optimal, well-performing system that’s facing perfectly south and has little to no shade. Consider a good battery array as well.
The way homeowners will pay back that system, and ultimately break even, is through savings on your electricity bill, federal tax credit, and possibly some additional state solar incentives, like solar renewable energy certificates, in certain markets and territories.
Solar Payback Period for Financing a Solar System
If you can’t cover the full cost of your solar panel system out of pocket, there are still other ways you can go solar. For example, if you finance your solar panel system with a lease, you will pay nothing out of pocket until the solar system is up and running. Our team will install the system for you at no installation cost. The payback period for an installation like this can be instant.
For example, if you are paying $200 per month on your electricity bill and we can give you a solar system that offsets 100% of your electric bill, you only need to pay for the cost of the lease. Say your monthly payment for your solar system is $150 — you are saving $50 a month from your solar system. Those savings are instant when the solar power system goes live. On top of that, you can also take into consideration the federal tax credit and any local state solar incentives that may be available to you.
The Benefit of Green Power Energy’s 25-Year Warranties
Your solar panels comes with a 25 year warranty from Green Power Energy, your local installer, as well as a 25 year warranty on almost all of the manufacturer components. That means the system is going to work for many years after solar panel installation at no cost to you. Once you’ve broken even, you are now paying nothing for the system and still saving hundreds of dollars per month potentially, depending on the size of your system and how many solar panels you have.
Find Out Exactly How Long It Will Take To Break Even On A Solar System For Your Home
Now, if you want to find out the exact breakeven point on a solar energy system for your home, schedule a free consultation with one of our solar experts today. We’ll get you a custom quote for a solar system at your home.
