How Many Years To Break Even On Solar Panels

Increased utility electricity rates and lower equipment costs are making it easier and less expensive to for homeowners to own rather than lease their solar panel systems.

How many years to break even on solar panels.

Example of the break even graph from the solar nerd calculator. This year most homeowners are paying between 2 87 and 3 85 per watt to install solar and the average gross cost of solar panels before tax credits is 16 800 says energysage s data. If your break even point is reached within 5 years and you expect to save at least 2 000 a year for electricity assuming you purchased the system with cash then you benefit from around. 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.

Interpreting the solar nerd payback graph. The graph above is a screenshot from the solar nerd calculator. For example if you spend 16 000 on a solar panel system then get a tax break of 4 000 the cost after incentives is 12 000. 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.