Solar Panel Break Even Point

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.

Solar panel break even point.

The graph above is a screenshot 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. 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. 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.

If you plan to sell your house sometime soon the shorter the break even point the better. 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. 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. Interpreting the solar nerd payback graph.

Solar panels are typically under warranty for 25 years. This is called the break even point. Example of the break even graph from the solar nerd calculator. 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.

However the savings after those seven to eight years can be quite significant. 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. On average solar panels can take anywhere from seven to eight years to break even.