Break Even Time For Solar Panels

Solar panels are designed to last at least 25 years and many modern brands will last much longer than that.

Break even time for solar panels.

An average sized residential solar system about 400 square feet of solar panels costs 18 000 according to the solar energy industries association an industry group. However if you live in a state with low electricity prices and few incentives you ll most likely break even faster with an outright purchase. You just start saving right away similar to a third party electric company in a deregulated market he says. To provide a general range hancock says most individuals who go solar will break even in 15 to 25 years.

When considering that lifetime any payback period less than about half that time or 12 5 years can be considered decent more important than payback time is a concept called internal rate of return or irr for short. To figure out payback period without the solar panel cost calculator we first calculate the true cost of installing solar after incentives have been claimed then we compare that against the cost of electricity from the utility company which tells us how long it takes to break even on the system. If your break even point is reached within 5. Sum up your annual financial benefits including avoided electricity costs and any.

For people expecting to own their home for a long time calculating the lifetime savings after the break even point is where the gold is. After your investment is paid off your solar panels will continue to generate clean electricity for free and will continue to do so for as long as your equipment lasts. Subtract the value of up front incentives and rebates from the gross cost of your solar panel system. Take the following steps to calculate your payback period.

Most solar panels are manufactured to withstand some pretty heavy beatings from the elements so its pretty unlikely that you would see a physically broken solar panel. The tax break reduces. The break even point when energy output equals manufacturing energy input has fallen from 20 years to just two years. Break even with a ppa lease is zero because you don t pay anything.

Solar panels are typically under warranty for 25 years so that s the standard figure used for the lifetime of a system although it s often much longer.