How Many Years To Break Even On Solar Panels

If your break even point is reached within 5 years and you expect to save at least 2 000 a year for electricity assuming you purchased the system with cash then you benefit from around.

How many years to break even on solar panels.

Then if the solar energy your panels make reduces your electric bill by 1 500 per year your payback period would be eight years assuming electricity rates don t increase. The graph above is a screenshot from the solar nerd calculator. The solar panel payback period is a calculation that estimates how long it will take for you to break even on your solar energy investment. 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.

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. Example of the break even graph from the solar nerd calculator. For example if you spend 16 000 on a solar panel system then get a tax break of 4 000 the cost after incentives is 12 000. Interpreting the solar nerd payback graph.