How Many Years To Break Even On Solar Panels

The graph above is a screenshot from the solar nerd calculator.

How many years to break even on solar panels.

Increased utility electricity rates and lower equipment costs are making it easier and less expensive to for homeowners to own rather than lease their solar panel systems. 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. 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. Example of the break even graph from the solar nerd calculator.

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. 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. This year most homeowners are paying between 2 87 and 3 85 per watt to install solar and the average gross cost of solar panels before tax credits is 16 800 says energysage s data. 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.