Are you considering buying solar panels for home use?
Solar panel installation is the hottest renewable energy project in the United States. Americans installed over 2 million residential and commercial solar panels to date. Like other investments, check whether solar panels benefit you in the long run.
Before buying, it’s wise to think about how soon before you earn money. In this guide, you’ll learn about solar panel earnings. Read on and learn more:
What Is the Payback Period for Solar Panels?
It refers to the necessary time before paying off the solar panel system through savings. Get the total solar panel cost and deduct the solar incentives, rebates, and monthly savings.
Let’s say you spent $25,000 on a residential solar panel system. You get a tax break of $4,000, bringing the costs down to $21,000 after incentives. In this example, assume the solar panel system reduces your electric bill by $1,500 per year.
After calculations, the payback period for your solar panel kits and the system is 14 years.
You might feel it’s too much time before paying off the system. However, solar panels are 20% cheaper than they were five years ago. In 2021, the average cost of solar panels is $20,000 after tax credits.
Factors Affecting the Solar Payback Period
Calculating the payback period isn’t as simple as the example above. You must also consider various if you want to find an accurate solar payback period. For example, the formula above assumes your electricity rates and usage won’t change.
It relates to the energy production from your solar system and its consistency. Since they’re part of the formula, the total system cost is also important. The same applies to incentives, rebates, and federal tax credits.
Depending on the solar panel system, expect to pay back the initial cost after 7 to 20 years.
Curious about how much you can get back from solar panels? Check out blueravensolar.com/blog/how-much-do-solar-panels-save/ to learn more.
Key Tip: Consider Your Roof Before Getting Solar Panels
A common mistake for homeowners is they don’t ascertain their roof’s condition beforehand. While your solar panels can last two decades or longer, your roof may not. If it’s in awful shape, consider renovating it before looking for solar panels for sale.
If you’re renovating the roof, don’t forget to add it to the total investment costs. If you’re not installing the solar panels on your roof, do the same with your desired area. This way, you don’t have to pay extra renovation costs in the future.
Start Earning From Your Solar Panels Today
Using solar panels has a lot of significant benefits. Sustainability and profits are only a handful of their advantages. With that said, we hope you now know the necessary sacrifices when you buy solar panels.
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