How Long To Pay Off Solar Panels

The typical solar payback period in the u s.

How long to pay off solar panels.

The price of electricity is 0 13 kwh. For a typical solar installation the general rule of thumb is that for every 1kw of solar panels needed the area required is approximately 100 square feet. There are also many state and local tax credits and incentives available throughout the country too many to list here. With solar the average bill here in west texas is 30 for a total of 7 200 for the next 20 years so if a solar solution for that size consumption is 32 000 with the 26 tax credit it comes out.

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. 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. Buyers who are aware of this trend may have no interest in taking on a long term obligation to pay a solar company thereby reducing the number of buyers willing to take over your payments. As a solar installer one of the top questions we get asked is how long do solar panels last if you re investing in a new solar energy system for your home you ll want to be sure the modules or panels on your roof last long enough to be worthwhile.

Dividing 14 200 by 1 734 gives a solar payback period of about 5 8 years even if electric rates don t go up between now and then. If your cost of installing solar is 20 000 and your system is going to save you 2 500 a year on foregone energy bills your solar panel payback or break even point will be 8 years 20 000 2 500 8. This credit drops to 26 in 2020 and 2021 22 in 2022 and then will drop to zero after that unless renewed again by congress. That s what we d call a great deal.

This means that for a 1mw solar pv power plant the area required is about 2 5 acres or 100 000 square feet. If their solar panels were fully connected by september 2020 they d be paid off before the summer of 2026 and will keep making electricity until at least 2045. In this example let s say the price for solar panels is higher in his area 4 w or. Is just above 8 years.

The cost of ownership includes the maintenance costs which must be discounted to find the npv. He wants to meet 100 of his energy costs with solar panels. The lcoe can then be. As a result if electric bills can be reduced so much the cost benefit ratio of solar panels starts to become more questionable.

In 2019 it takes 30 off the cost of a home solar system. In addition to the federal tax credit of 30 his utility offers an incentive of 0 3 w for solar projects.