In this last post of the series Solar Panels With Pears and Apples, we cover another of the most common questions homeowners always ask us.
3. I Want To Go Solar. When Do I Get My Payback?
It’s a fair question. As you deserve honest answers, we explain all the contributory factors that determine when you finally get your solar panel payback or “break-even point”.
The payback for installing solar panels installed depends on many factors, including the following:
- Your energy consumption habits
- Estimated electricity generation
- Your local utility provider
- Your roof orientation
- Solar tax incentives
- Cost of the solar panel system
- Upfront financial incentives.
As you can see, you need to know how to calculate your solar payback.
Here are 3 simple and reliable steps to calculate your Payback Period…
- We begin by calculating the Net system costs:
Net System Cost = Solar System Cost – Tax Incentives & Rebates (including the solar Investment Tax Credit – ITC that reduces the solar system cost by a whopping 30%)
- Then, we calculate the annual financial benefits
Annual Financial benefits = New Monthly Bill (Reduced by up to 50%) + Home Appreciation Rate (4%-6% on average in California)
- Lastly, we get your Payback period!
Solar Payback Period = Net System Costs / Annual Financial Benefits
The estimated payback period of a solar system in California is 8-12 years, making it a worthwhile investment with massive financial savings!
If your estimations do not appeal to you very much…
We invite you to counterbalance against these facts:
- Premium solar panels’ expected lifespan is between 25 to 30 years, but as we only deal with premium solar panels, their expected lifespan is over 30 years.
- Our installers provide 30-year solar insurance to cover solar panel malfunction and guarantee system performance.
- We offer free-cost warranties for the panels’ malfunctions and the system’s performance!
- We guarantee your defaulted panels will be replaced in under 48 hours!
Do the math now!
If you can count on more than 30 years of clean, affordable solar energy nurturing and giving life to your home at up to 90% of your current energy bill, isn’t it a sweet deal?
Let us know your thoughts in the comments below.