Solar Panel Payback By State

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.

Solar panel payback by state.

Solar is a 100 renewable energy solution that can yield a robust business advantage. Interpreting the solar nerd payback graph. Nationally the average payback period for systems in the 100kw range is about 5 3 years. These amounts vary significantly by state.

Is just above 8 years. In almost all cases state and local programs stack. With a state solar tax credit you can deduct a portion of the cost of your solar panel system from your state tax bill similar to the federal itc. Regardless of the exact cost of installation there are many affordable financing options for solar panel systems.

How is the solar panel payback period calculated. On a 10 000 solar project the credit would put 2 600 back in your pocket significantly speeding up your payback period. Request a free business case analysis solar quote comparison. Commercial solar payback periods irr by state.

On top of the federal incentive there are also state and city level programs available to encourage solar adoption on a local level. Below is the calculation for using the simple payback method for your solar panels. Example of the break even graph from the solar nerd calculator. Until now that is.

Installing photovoltaic pv panels can help businesses meet their sustainability objectives and reduce their carbon footprint which in turn can boost their corporate social image and bottom line. We ve garnered information from across the internet and compressed it into a bite sized formula. This tricky question of how long it takes for solar panels to pay off has kept homeowners up at night ever since solar panels met roofs. A home solar system in a state like virginia where the payback time of an investment in solar is around 12 years has an irr of about 8.

The graph above is a screenshot from the solar nerd calculator. To calculate your own solar payback scenario using the simple payback method simply divide the cost of the solar panels in by the electricity savings per year in that the system will produce. Here s the bad news. However one of the biggest reasons many businesses switch to solar is to reduce their operating costs through.

In pennsylvania the average solar payback period is 10 66 years. If your cost of installing solar is 20 000 and your system is going to save you 2 500 a year on foregone energy bills your solar panel payback or break even point will be 8 years 20 000 2 500 8. A solar payback period is the amount of time it takes for property owners who install solar panels to recover their initial investment through electricity savings. The years to payback isn t fixed.

The good news is there are many states with better irr and payback time than virginia especially in the northeast and california where electricity costs are very high.