Customers, who are interested in solar panel installation often ask us the following question: “Will solar panels eventually be able to pay for themselves?” Our answer is astonishingly simple, “Yes!”
This brings us to The second most frequently asked question. Each solar panel installation is different so this question can be a bit more difficult to answer. We can give you a guideline on how to calculate solar panel payback. Continue reading to find out more.
How Long Is The Payback Period For Solar Panels?
The solar panel payback time is the amount of money it will take to pay off the entire solar power system. This includes rebates, incentives, savings, and other means until the total cost of solar panels has been paid.
An example of a solar payback time calculation: A solar panel system would cost $16,000 and you get a $4,000 tax cut. The total cost after incentives is $12,000. If you assume a $1500 per year reduction in your electric bill, then your payback period will be eight years.
Depending on where they live, most homeowners in the United States can expect solar panels to pay off within 9-12 years. Florida residents have the advantage of a shorter payback time than other states.
Factors That Determine Your Payback Period:
These are five main factors that can impact your solar payback time…
Your solar panel system’s size will determine how much electricity you use. This will affect the average electricity consumption for your home as well as how much you end up paying in monthly electric bills.
The total cost of the system. The final price of solar installations before any rebates or incentives are added.
Tax credits and incentives for solar panels. Florida residents who choose to install solar panels will be able to reap the benefits from several state and local incentives, rebates, and the federal tax credit. How much energy you can produce from your solar system over the course of one year?
How Much Electricity Do You Pay?
Florida Net Metering is one of the most important regulatory policies for solar energy in Florida. It monitors the electricity your home consumes by connecting to the grid. Your electric company will send any unutilized energy back to the grid, and you will get a credit.
Are you interested in going solar? To learn more about the energy-saving options offered by ESD Solar In Tampa.
This post was written by Daniel Massaad, owner and expert solar technician at Energy Solutions Direct! ESD is one of the top solar panel companies in Florida! Our licensed and certified contractors are masters of their craft; with years of experience servicing the great Tampa Bay area and beyond, the choice is simple. ESD excels at offering you the best in solar value!
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