Do Solar Panels Pay Off

How are you financing your solar panel system.

Do solar panels pay off.

The financial benefits of going solar are now well documented. Solar panel payback period is the amount of time it ll take you to completely pay off your solar power system through savings on your electric bill. This tricky question of how long it takes for solar panels to pay off has kept homeowners up at night ever since solar panels met roofs. Solar panel systems actually function as investments with strong rates of return and homeowners generating solar electricity can avoid paying increased utility rates by eliminating their electricity bills.

Until now that is. The average cost of a solar panel system for a home in may 2020 is 3 18 per watt making an average 7 kw installed residential solar power system 22 260 before the 26 federal solar tax credit and 16 472 once the tax credit is applied. It is calculated by taking the total cost to install the system then subtracting solar incentives and or rebates and monthly electric bill savings until the total cost has been paid off. Pay little or nothing and save hundreds of dollars per year on average.

Solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment the solar module will almost certainly represent the largest single component. What do solar panels cost and are they worth it. These savings depend on factors like the size of your solar panel system your energy consumption and your local utility rates. If you have enough to make a purchase in cash you ll save more than with any other option but even with a 0 down solar loan your savings could still be in the tens of thousands.

After going solar the first thing you will likely notice is the drastic decrease in your monthly electric bill. While solar leases and power purchase. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. Consider solar if you have a high utility bill live in a prime location and qualify for tax breaks or other savings.

The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. This means that a 6 kw 6 000 watts solar panel system comfortably offsets the emissions produced by one fossil fuel automobile in a year. In addition to significant bill savings a solar system comes with the satisfaction of taking a car off the road so to speak.