Considering a solar panel system? Solar energy is all the rage right now and it can improve your life, especially when you consider the financial benefits. While a new solar system could be a great addition to your home and reduce your environmental impact, you also need to consider the cost of installation and how long the solar panel system will take to pay for itself.
This is not a straightforward answer and will depend on a few important factors. So, if you are wondering how long a solar panel system will take to pay for itself and if it is worth the cost of installation, keep reading for all that you need to know.
The Cost of Installation
The cost of installation will be one of the main factors to consider. It is a major cost to cover with the average costing around $20,000 but keep in mind that there are finance deals that can make the cost easier to manage when you use the best solar company in your area, such as Blue Raven Solar.
Not only this, but the federal solar tax credit provides a 26% tax credit. This allows you to make significant savings on solar panel installation and will speed up how quickly the system pays for itself. There may also be other incentives, which you can check with your local solar company.
Average Electricity Usage
Your household electricity consumption will also be a key factor. The higher your bill, the more you will benefit from making the switch provided that you have a system installed that will match your needs.
Another important factor here is the rising cost of energy. This means that a new solar system will protect you against this in the future and could help you to make significant savings.
Sunlight Exposure
Another factor that you cannot overlook is sunlight exposure. Those that live in sunny areas will be able to generate more of their own electricity and eliminate their electricity bill. Not only this, but those that generate surplus electricity can sell this back to the grid in the form of a solar credit.
The Payback Period
As you can see, there are various factors that will determine your solar energy payback period and it is not a straightforward calculation. There are calculators that you can use online that will help to provide an estimate, which will help you to determine when you will start making significant savings on your energy usage.
In the US, the average is to break even in around 8 years. When you consider that most systems last 25-30 years, this allows you to make large savings over many years (while protecting you from inevitable rising energy costs).
A Solar Power System Is a Smart Financial Investment
How long it takes for a solar power system to pay for itself is not an easy calculation, but you can get an idea for this online. Most systems pay for themselves within 10 years, which can provide you with free, clean solar energy for many years while also allowing you to reduce your environmental impact.
If you found this post interesting, check out our other home-related articles today.
