Average Time To Pay Off Solar Panels

Socal bob has a daily energy use of 30kwh.

Average time to pay off solar panels.

He wants to meet 100 of his energy costs with solar panels. 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. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. In most states solar power is a solid investment that will result in a significant return over the next 20 to 30 years.

Average solar power payback period varies significantly based on where you live. The typical solar payback period in the u s. In this example let s say the price for solar panels is higher in his area 4 w or. The price of electricity is 0 13 kwh.

Data from the energysage solar marketplace shows that in 2020 solar shoppers who compare their options in the marketplace can achieve payback on their solar investment in about 8 years. 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. 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. Comparing quotes from multiple solar installers can actually help you go solar with a shorter payback period than the national average.

In 2019 it takes 30 off the cost of a home solar system. As of june 2020 the average residential solar panel payback period in the us is 7 6 years based on the last 50 000 homes that have used our state of the art solar panel estimator to generate a solar cost and savings estimate for their home. With a solar payback period of between 4 10 years this represents a simple investment return of between 10 25. Here is a more detailed discussion on whether solar panels are worth it.