How Long Does It Take To Pay Off Solar Panels

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.

How long does it take to pay off solar panels.

The solar panel payback period is a calculation that estimates how long it will take for you to break even on your solar energy investment. In january 2018 president trump imposed a four year tariff on imported solar cells and panels that started at 30 and drops 5 each year. 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.

Photovoltaic solar power. They provided time frames for households with high daytime solar power usage 50. He wants to meet 100 of his energy costs with solar panels. 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.

Given that many solar panels and inverters come with 25 year product warranties you can expect more than two decades of trouble free operation from your solar array. Photovoltaic pv solar technology has been around since the 1950s but thanks to declining solar module prices it has only been considered a financially viable. Socal bob has a daily energy use of 30kwh. Payback times for a 5kw system in each capital city accurately predicting the time it takes for an investment in solar pv to pay off isn t straightforward so we asked the independent alternative technology association ata to calculate approximate payback times for a 5kw solar system in each capital city.

Here s how the figures break down for cities in the. Changes in government trade policy also impact prices. In plymouth it takes only 8 4 years for a domestic solar panel installation to pay for itself compared with the national average of 9 5 years. Furthermore since once the initial investment is covered electricity generated by the panels is free solar panels eventually pay for themselves in a couple of years.

In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. In other words if you compare current solar panel prices with those from 20 years ago you will be surprised to know that the cost of solar panels have dropped abruptly.