How Long Do Solar Panels Pay For Themselves

If you save 92 a month which is the average savings in nevada you would break even at about 7 3 years.

How long do solar panels pay for themselves.

An average timeframe is fifteen years from the time owners begin using the solar panel system including installation cost recovery. Those solar shoppers will continue to enjoy free electricity for the life of their solar panel systems which can last between 25 and 35 years. 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. The payback period will tell you how long your solar panels will take to pay for themselves but it doesn t consider the full lifetime value of the system.

For a typical home the cost of your system can range from 20 000 to 30 000 to purchase and install. So how long do solar panels take to pay for themselves. If your system is paid off in 13 years one way to think of it is that you re buying energy for 25 years plus for the cost of 13 years worth of energy instead. Moreover the length it takes for a purchased solar system to pay for themselves is influenced by the roof s exposure to sunlight roof direction the price for electricity and local subsidies.

In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects. Let s say the final cost of your system ends up at 8 100 the average cost in nevada. Average solar power payback period varies significantly based on where you live. Socal bob has a daily energy use of 30kwh.

In this example let s say the price for solar panels is higher in his area 4 w or. The time it takes for solar panels to pay for themselves can range between 5 to 15 years. The price of electricity is 0 13 kwh. He wants to meet 100 of his energy costs with solar panels.

As of june 2020 the average residential solar panel payback period in the us is 7 6 years based on the last 50 000 homes that have used our state of the art solar panel estimator to generate a solar cost and savings estimate for their home. 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. Data from the energysage solar marketplace shows that in 2020 solar shoppers who compare their options in the marketplace can achieve payback on their solar investment in about 8 years. Smaller or more efficient systems may only take five years to recover while less efficient systems can take longer.

Solar panels come with 25 year warranties but many systems will still produce well beyond the warranty period.