Do Solar Panels Really Pay For Themselves

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The financial benefits of going solar are now well documented.

Do solar panels really pay for themselves.

He wants to meet 100 of his energy costs with solar panels. Solar panels do pay for themselves much faster then people tend to predict before they look into it further. So how long do solar panels take to pay for themselves. Solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment.

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. Purchase and installation can vary from several thousand dollars to 15 000 or even 40 000 for the largest versions. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. There s no denying that solar panels are a long term investment but given the potential for both saving money on energy bills and earning from the energy you put back into the system solar panels can actually pay for themselves over a period of time.

In this example let s say the price for solar panels is higher in his area 4 w or. Then through the average return it only takes four years to pay the remaining two thirds. Here s how to calculate payback period. Socal bob has a daily energy use of 30kwh.

It depends on where you live how much energy you use and how much your utility bills were prior to installing you solar panel systems. Solar panels do pay for themselves but how long it takes depends on cost available incentives and your electricity rate. The price of electricity is 0 13 kwh. For example if an average solar panel installation costs 18 000 incentives will lower this price by a third.

Depending on the system s efficiency and the amount of energy being used solar panels can pay for themselves in as little as four years. Solar panels can save money but they can also come with high upfront costs. The solar module will almost certainly represent the largest single component of the. Understand your solar panel payback period.

For a typical home the cost of your system can range from 20 000 to 30 000 to purchase and install.

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