How long does it take for solar panels to pay back?

So, if it takes 10 years to recover the cost of your solar panels, you can still expect savings on your electric bills for another 15 years, which is an excellent investment. Solar companies can provide you with an estimate of your payback period.

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 much does it cost to pay off solar panels?

Some states, like Louisiana and Nebraska, have very affordable energy prices, around 7.5 cents per kWh, and it'll likely take far longer to spend $16,000 on your energy bill to pay off your solar panels. As we said earlier, many websites and solar companies have solar return on investment calculator tools to help you understand things.

How long do solar panels last on a roof?

Solar panels on your roof should last for 25 years, and by looking at the total return on investment, they can be compared to other ways to invest your money. If you’d rather skip the long explanations and math equations, you can calculate the payback period for your specific home now by using our solar panel payback calculator:

Does rooftop solar pay off your utility bill?

Those credits can lop off a significant chunk of the money you pay for solar panels, making your payback period shorter. Sometimes rooftop solar can completely cover your electricity needs -- reducing your utility bill to $0 -- and sometimes it only covers a portion of it.

How long does it take to break even on a solar panel?

For most homeowners in the U.S., it takes roughly 11 years to break even on a solar panel investment. For example, if your solar installation cost is $16,000 and the system helps you conserve $2,000 annually on energy bills, then your payback period will be around eight years (16,000/2,000 = 8).