Saturday, February 17, 2024

Does Solar Energy Pay For Itself

Whats Wrong With Solar Power

Does Solar PV pay for itself. Payback calculation on our 3.9kw array

Although the power generated by solar panels is not emission, it is important to note that there is some pollution associated with solar panel manufacturing. Some solar panels contain harmful pollutants, such as sulfur hexafluoride, which are stronger than carbon dioxide.

What are the three problems with solar energy? The potential environmental impacts associated with solar energyâ land use and habitat loss, water use, and use of hazardous materials in manufacturingâ can vary greatly depending on the technology, which includes two broad categories: photovoltaic solar cells or concentrating solar thermal plants .

Total System Cost Before Incentives

The next step is determining how much your system will cost. This number represents the final price of a solar installation before considering incentives like the federal solar tax credit. It is the number well use to begin subtracting savings from to determine the payback period.

Example 2:

As of April 2021, the national average cost of a 6 kW home solar system is about $2.85 per watt, or $17,100, before incentives. The homeowner in our example will either need to pay cash or take out a solar loan for around that amount.

Does Solar Really Pay Off

Solar panels pay for themselves on time by saving you money for electricity bills, and in some cases, allowing your money to go through incentive payments. The average solar panel payback time is between 5 and 15 years in the United States, depending on where you live.

Does solar really pay for itself?

The average time it takes a solar panel to pay for itself is between 6-10 years for most earth owners. Remember, there are many variables that can change this dramatically. The gross cost of your solar panel system is the biggest cost.

Are solar panels a ripoff?

No wonder solar panel scams are rife. From false claims to low quality systems to outright fraud there are many ways solar panel fraud can be done.

Also Check: When Are Solar Panels Most Efficient

Change In Electricity Costs Over The Years

The tricky part about predicting payback periods is when you consider fluctuating electricity costs.

The US has seen an annual rise in electricity costs by 2.3% on average in the past 20 years. But, this still differs from state to state. To better predict future increases, use the history of your utility firm rate changes.

What Is The Solar Panel Payback Period

How Long Does It Take For Solar Panels To Pay For Themselves?

The solar panel payback period is the timeframe in which the solar panels pay for themselves. The many solar incentives and the avoided electricity costs are what equivalates to the solar payback.

There are many things to consider to what helps solar energy pay for itself:

  • How many solar panels are installed
  • Weather conditions in your location
  • Estimated electricity generation
  • Total costs of solar panel system
  • Solar incentives
  • The average cost of electricity bill

Recommended Reading: Is Solid State Drive Better

Calculate The Payback Period

The payback period is how long will it take to completely pay off your solar panel cost and reach the breakeven point.

You can easily calculate it by using this simple equation:

For instance, lets assume you bought a $15,000 solar system .

Buying a solar system will qualify you for a 22% tax break, so you save $3,300 .

An average $15,000 solar system will reduce your electricity bill by $1,500 a year

So, it will only take around 8 years to fully pay off your solar panels cost, thats without calculating the rising electricity costs as the higher the kWh is, the more you save.

Also, the average solar system has a lifespan of 25-30 years and most solar installers will provide you with up to 20 years performance warranty.

This means that you will enjoy around 12-22 years of FREE ELECTRICITY resulting in more than $25,000 of NET PROFIT.

Further, studies showed that installing solar panels wont only save you tons of money, but it will also increase your property value by 4.1%.

Average Solar Panel Payback Period In The Us

Though the average solar panel payback period is somewhere in the eight- to 12-year range, this can vary quite a bit from home to home. For some, it may be as little as five years. For others, it may be as long as 15 years. Local electricity costs and state-specific financial incentives, such as tax credits, solar rebates or net metering programs, are determinative factors.

Read Also: How Does A Sole Proprietorship Work

Do You Offer A Guarantee Or Warranty For The Products And Services I Eventually Buy Through Your Suppliers

We are not responsible for the standard of work carried out by the suppliers that provide you with quotations as a result of your enquiry via our site. There is no warranty provided by us, implied or otherwise for the products or services provided by any suppliers that you contract with. Individual suppliers may offer their own warranties, but these and any standards of workmanship are not in any way associated with Leads 2 Trade Ltd. or its partners.

Determine Annual Savings Of Solar Panels


To work out how much you will save per year by installing renewable energy sources like solar panels, multiply how many watts the panels produce by how many hours of sunlight they see each year. So if your solar panels produce 280 watts and get three hours of sunlight a day then to calculate the annual savings from running them use this equation:

280 watts x 3 hours = 880 watt-hours per day

880 watt-hours per day x 365 days = 324,240 watt-hours per year

So how much you will save each year by running your house on solar power is how much do you currently pay in utility bills times how many kWh that would cost and how many kWh the solar panels will provide.

Also Check: Can You Put A Solar Panel On A Golf Cart

How Long Will It Take For Solar Panels To Pay For Themselves

There are several factors that affect the total costs and total benefits of switching to solar energy. The average time it takes for solar panels to pay off is 6 to 10 years for most homeowners.

How long do solar panels pay off? Most solar panel installations should take 20 to 25 years and longer with proper maintenance, and the initial cost can usually be offset within the first 12-18 years. See the article : How much do solar panels cost for a 2000 square foot house?.

How To Calculate The Payback Period For Solar Panels

For instance, if your house uses 10,000Kwhs per year, it doesnt experience tree shading, and the roof faces north to south.

For instance, if your house uses 10,000Kwhs per year. Your home doesnt experience tree shading, and the roof faces north to south.

Im sure your goal is to reduce or stop altogether buying power from the utility company. Your houses Southside can provide you with this. By adding 20 panels, youll deduce that the recouping period will be approx eight years.

If you decide to install similar 20 panels on the Northside instead of the Southside, I assure you, the power production will drop drastically. Northside panels produce 50% or less power than Southside, even if they have the same hardware.

Thus, youll be forced to add more panels to have 100% offset this costs more money resulting in a long time to recoup your investment.

The amount you cough out for power influences how fast you can recoup your solar system investment.

If all factors remained the same. The only remaining variable would be the Kilowatt per hour.

If you cough out 10,000 for the solar system and the electric company charges you 0.20/KWh, then the solar system will only pay for itself after it has produced 50,000kwh.

$10,000 / $0.20 = 50,000

If your solar system produces 10,000 kWh a year, itll take you five years to recoup the investment you made into that system.

5 years X 10,000 kwhs = 50,000 kwhs

$10,000/ $.0.10 = 100,000 produced so as to get even with your solar system.

Don’t Miss: Do Solar Panels Add Value To Your Home In Florida

Are Solar Panels Efficient

Some solar panels convert 22 percent of their available energy into electrical power. This is an actually amazing number if you consider the fact that we are paying a lot of our electricity bills every month. The solar panels are made of solar cells. A cell is a small disk of a semiconductor like silicon. They are attached by wire to a circuit. As light strikes the semiconductor, light is converted into electricity that flows through the circuit. As soon as the light is removed, the solar cell stops producing power.

A solar pool heating system uses the suns radiant energy to heat your water. The water is directed to the collectors, rising from the bottom to the top. As it gradually rises, its heated by the natural energy and then returned to your pool. This cycle continues until your pool water reaches the desired temperature. You can enjoy an added 10-13° to your water without any extra costs or air pollution!

How Does Solar Energy Save Money

How Long Does It Take For Solar Panels To Pay For Themselves?

If your average monthly electricity bill is high, and youre living in an area with high energy rates then its worthwhile installing solar panels in your home while the 26 percent tax break is in place. It is not only amazing for your wallet but also good for the environment. Here are a couple of reasons why you should invest in solar panels:

  • The price of energy is not dropping
  • The cost of installing solar panels has improved and prices have fallen
  • Installing solar panels provides a long-term subsidy benefits
  • Save money on your pension by reducing energy costs on your monthly electricity bill
  • Solar panels are long-lasting and require little upkeep

Recommended Reading: How Much Power Does A 9kw Solar System Produce

How Long Does It Take For Solar Panels To Pay For Themselves

Do solar panels pay for themselves? Absolutely!

How long will it take for solar panels to pay for themselves on your specific home? Well… thats a much trickier question, but its one our site is uniquely set up to answer.

You can calculate the payback period for your home now by using our solar panel payback calculator or you can learn the basics first if you are unfamiliar with how solar panel payback calculations work.

Will Solar Energy Save Me Money

Whenever you research online, you see varying claims for solar savings.

They seem sensible. Or are they far-fetched?

Its hard to find the truth.

Maybe youve even seen those ads claiming solar energy is free.

Before we dive into whether solar can save you money, well clear up that tall tale: switching to solar is not free.

Nope. Never. Nice try, tricky advertisers.


Read Also: How To Qualify For Solo 401k

Do Solar Panels Eliminate Electric Bill

In conclusion, true, you will still receive an electricity bill when you install a solar panel. Regardless, installing solar panels will almost certainly lead to lowering the average cost of your monthly electricity bill, and can eliminate your monthly electricity bill in some cases.

Why is my electricity bill so high when I have solar panels? Solar energy systems are a limited resourceâ they can only produce a lot of energy that is consistent with the size of the system, and most utilities limit the size of the system to the average historical energy use at the site.

Don’t Assume You’ll Always Recoup The Cost Of Solar Panels On Your Home’s Value If You Sell Your House Early

Grid Tied Solar Systems: Will Solar Pay for itself?

Some people assume that a more efficient home generating its own energy would be more attractive to buyers. But others worry that ‘ugly’ panels plastered all over their roof could push the price of their house down.

Solar panels are a hefty investment and might not be suited to those planning to move in the next few years certainly you shouldn’t expect a big upfront investment to be immediately reflected by a jump in your home’s value.

Trade body Solar Energy UK recently published a report which found homeowners who move having had panels installed would claw back some of the value of their investment in a higher sale price. It looked at more than five million property transactions and said a typical home with solar panels could increase in price by at least £1,800.

When we asked NAEA Propertymark for an overview, it was more cagey. It said: “Having such sustainable technologies will become more attractive for homeowners in the future. There are benefits to having solar panels however, in the short term, they don’t provide an increase in house value, with the panels often costing more than they attribute in value. With houses coming on to the market in short supply and other factors, people are being forced to compromise on their preferences, including energy saving measures.”

Read Also: Where To Buy Solid Gold

More Ways It Can Help You Save

Some states have net metering policies that credit excess energy to the homeowners bill. This is usually stated as avoided cost rate.

In short terms, this is the energy you didnt use being credited back to your bill.

Net metering allows electric companies to credit the wholesale amount per kWh avoided. At times this may only be a few pennies per kWh, but it still adds up over time.

Its easier to achieve the break-even point when all aspects of savings are considered.

Determine Combined Costs Of Your Utility Bill

This is how much you currently spend on energy annually, which can be found by looking at how much your utility company charges you for electricity each month. If you are not sure how much the kilowatts per hour that you use each month costs, then call up your provider and ask them how much they charge you per kWh. The amount that they charge multiplied by how many kWh you use in a particular time period is how much your utility bill comes to each year and this amount will be how much it costs you each year to run your home normally.

Don’t Miss: How To Clean Solid Hardwood Floors

What Is The Average Solar Payback Period For Homes In Ireland

This swings a lot due to the variety in systems and requirements but it can take anywhere from 5-15 years. Its likely to lean increasingly towards the lower end of the scale with acarefully considered design and carbon taxes looking to continue to grow. That said, with PV solar panel systems lasting between 25-35 years, even at the higher end of the scale youre looking at 10 years of savings at a minimum.

Get in touch if you have any questions and/or would like to request a quote. Thats what were here for.

What Is The Average Electric Bill With Solar Panels

How long does it take for solar panels to pay for themselves?

Average New South Wales Solar Bills In New South Wales, the average electricity bill for solar customers is $ 372. While less than half of solar panel owners are satisfied with their feed-in tariff, 92% agreed that installing solar energy was a good financial decision.

How much does electricity cost with solar panels?

As of 2021, our market research and top brand data show that the average cost of solar panels in California is around $ 2.73 per watt. This means that after applying the federal solar tax credit, a 5kW system would cost about $ 10,101.

Why is my electric bill so high when I have solar panels?

Solar energy systems are finite resources they can only produce as much energy as the size of the system, and most utilities limit the size of the system to the historical average energy consumption of the site.

Read Also: How Much Does The Tesla Solar Roof Cost

The Importance Of Power Management

The best, most experienced solar installers wont only advise you on system size and the number of panels. They should also suggest power management systems that increase your savings over time.

For high power consumers, the best solution is often power management with 24/7 energy monitoring. These systems can automatically turn your appliances on or off for the most efficient solar power usage.

Power management often takes the form of a solar power diverter, which redirects excess solar energy towards a high power consumers like water heaters.

A smart power management system, like Power Genius, will automatically manages how solar power is used throughout your home, potentially reducing your pay-back period to as low as 5-7 years .

Myth #: Solar Panels Are Not That Green

This myth gets stirred up every now and then, but is notbacked up by any tangible data. What thedata does show is that the emissions of solarpanels are far less than the emissions relating to coal or naturalgas energy.

The overall emissions seem greater than they are since solarpanels require all of their energy up-front. But when dispersed over 30 years of emission-free generation, they proveto be much cleaner than the common alternatives.

Even when the energy to mine, clean, process, andmanufacture the solar panels is taken into account, the overall emissionintensity is 3x to 10x less than traditional fossil fuels.

Besides the emissions benefits, solar panels have an energypayback period of about 2 to 3 years according to the U.S. Department of Energy. This is about 40%faster than a standard coal-fired power plant will pay back its energy.

No energy generation method is without its faults, there are many positiveand negative environmental impacts of solar power.

Key Takeaway: Solar panels produce far less emissions perkWh of energy than coal or natural gas and payback their energy faster thancoal or natural gas.

Don’t Miss: What Is Solid Color Stain

Popular Articles
Related news