Solar Roof Payback Calculator

How is the solar panel payback period calculated.

Solar roof payback calculator.

To figure out payback period without the solar panel cost calculator we first calculate the true cost of installing solar after incentives have been claimed then we compare that against the cost of electricity from the utility company which tells us how long it takes to break even on the system. There are two leading independent solar energy calculators available to us consumers and solar installers who wish to do their own solar calculations. The latter is sometimes referred to as a solar payback calculator. 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.

The calculator also allows you to compare a high quality photovoltaic pv system with a lower priced solar system and see the difference in payback time. The typical solar payback period in the u s. It is calculated by taking the total cost to install the system then subtracting solar incentives and or rebates and monthly electric bill savings until the total cost has been paid off. Finally on the inputs tab you will see both a pre tax and after tax calculation of the internal rate of return irr on the investment of putting in solar.

Solar savings payback calculator see how long it will take for a solar system to pay for itself. The first solar calculator is pv watts from nrel national renewable energy laboratories. It s a fancy way of saying the calculator shows you the solar and battery savings and payback separately instead of blending the payback together. Our solar payback and roi calculator will help you make conscious decisions about your switch to a more environmentally friendly way to consume power.

Solar panel payback period is the amount of time it ll take you to completely pay off your solar power system through savings on your electric bill. A payback period of 10 8 years is actually above the average across the united states. Comparing quotes from multiple solar installers can actually help you go solar with a shorter payback period than the national average. According to a report from the national renewable energy laboratory nrel the average payback period in the united states is between 6 and 8 years.

How comparison shopping can improve your solar panel payback period. Residential solar system payback period 14 800 1 374 43 10 8 years.