For the majority of Endries Solar and Electric’s residential customers, systems are paid off within 7-10 years, with most of our commercial installations seeing a quicker payback at around 5-7 years. Seeing as most panels are guaranteed to last up to 25 years, (Solar Nation points out that often times closer to 30 years is reflected), paying off the installation with energy bill savings in less than ½ of the panel’s lifespan is a great investment.
However, this is a very subjective topic, heavily dependent on five categories which will vary from house to house. SolarReviews identifies these items as one’s: average energy usage (as this determines system size), the cost of your utility’s electrical rate and any foreseen increases, renewable energy incentives, rebates, and the federal tax credit, and system cost. Fortunately, the federal tax incentive has extended its 26% of the system’s cost throughout 2022.
System cost in terms of solar installations is viewed as the cost of the installation after subtracting the rebate, federal tax incentive, and any other incentives. It is important to note as well that this return on investment is not so much expedited by the sunshine received, however more reflective of the utility rate charged to your home or business.
Through savings on your electric bills and incentives/rebates, your solar installation is guaranteed to pay for itself over time: making solar energy a strong and positively environmentally impactive investment.