Break Even Time For Solar Panels

Take the following steps to calculate your payback period.

Break even time for solar panels.

Given that many solar panels and inverters come with 25 year product warranties you can expect more than two decades of trouble free operation from your solar array. 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. 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. To provide a general range hancock says most individuals who go solar will break even in 15 to 25 years.

If your break even point is reached within 5. Break even with a ppa lease is zero because you don t pay anything. 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. 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.

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. You just start saving right away similar to a third party electric company in a deregulated market he says. Subtract the value of up front incentives and rebates from the gross cost of your solar panel system. 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.

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. Each time the world s solar capacity doubled the energy required to make a pv module fell by about 12 the economist said while carbon dioxide emissions associated with the process dropped by 17 24. Yes solar panels break sometimes but probably not in the way you are thinking. 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.