Break Even Cost Of Solar Panels

The tax break reduces.

Break even cost of 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. If your break even point is reached within 5. Most solar panels last for 50 years have a 25 year warranty and start generating a return on investment after 8.

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. The average cost to install solar panels is from 10 626 to 26 460 after tax credit for a 6kw to 12kw system to power an entire house. Solar panel costs for an average sized installation in the u s. Usually range from 11 144 to 14 696 after solar tax credits and the average price per watt for solar panels ranges from 2 51 to 3 31.

Interpreting the solar nerd payback graph. 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. Solar panel cost in 2020.

If you are going through an installer you re looking at around 212 50 per panel 250 watts x 85 cents. 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. The average solar panel payback period is 7 to 12 years and solar energy saves 600 to 2 000 per year on electricity costs. Example of the break even graph from the solar nerd calculator.

Find out how you can calculate the cost of. 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. 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. What range of costs should you expect to see in quotes for a solar panel system.

Solar panels aren t just great for the environment compared to fossil fuels but can also provide significant returns over the course of 25 to 30 years. A typical solar panel ranges from 150 350 watts so for this example we ll cut right down the middle and use a 250 watt solar panel.