How much does a solar system cost?

Initial System Cost: The upfront cost of solar panels, inverters, and installation directly impacts the payback period. Costs vary based on the size, efficiency, and brand of the equipment. Example: A 7kW solar system might cost around $18,000 before incentives but only $12,600 after applying the 30% federal tax credit.

How long does it take to recoup solar energy?

Switching to solar energy is a major financial commitment and, if you’re like most homeowners, you’ll want to know how long it will take to recoup your investment. This average recovery time, called the solar panel payback period, typically ranges from six to 10 years, depending on a handful of factors.

How long do solar panels take to pay back?

The number of years you have to pay pack solar panels depends on the state where you live and the incentives and programs available. The payback period can take anywhere from five to six years in Massachusetts to 14.5 years in Washington State.

How long is a solar panel payback period?

The solar panel payback period typically ranges from six to 10 years, varying based on system size, location and incentives. Federal and local rebates, including a 30% federal tax credit, significantly lower initial solar installation costs.

How do I calculate my solar payback period?

To calculate your solar payback period, divide your combined costs by your annual savings. With tax credit: Combined costs ($18,552) ÷ annual savings ($2,613) = solar payback period (7.1 years) Without tax credit: Combined costs ($27,360) ÷ annual savings ($2,613) = solar payback period (10.5 years)

What happens if I pay off my solar panels?

Once you pay off your solar panels, they will generate energy at no additional cost. As a solar customer, you’ll receive a monthly utility statement comparing the energy your system produces to how much you use. Confused about the payback period for solar panels?