Many wise consumers hesitate to adopt on-grid solar until they’re sure of how and when they will start to see a return on their investment.
We think this is a financially wise move and an astute investment strategy. Fortunately for you smart consumers out there, we have the answers to your questions!
How Solar Pays Off Now
Electricity generated through photovoltaic energy systems has become financially viable for many U.S. residents.
How these factors might come together for you depends largely on where you live. Some locations (the sun-rich Intermountain West, for example) make better economic sense than others for adopting solar.
The most significant factor to consider is the ongoing value of your solar energy system, based on the utility cost savings you can expect. If your system is properly sized, sited, designed and installed, then it can virtually eliminate your annual electric bill.
Now that’s value!
Solar Payback Periods
On average, how long will it be until you can expect to break even on your solar investments and actually begin to save money with your system? After all, while most people understand the benefit of energy independence, saving money is the main motivator for many of us.
Your payback period depends on a few factors, such as:
- How much direct sunlight your panels get, which determines the amount of energy your array generates
- The price of electricity from the grid in your area
- Cost of equipment and installation, which varies depending on system size and incentives such as net metering, rebates and tax credits
- How you financed your system
Remember that no two payback periods will be the same, because of the variety of factors that determine it. The average time literally varies from house to house, day to day.
If you live in California, for example, the average payback period is nine years. In New Jersey, payback comes in about seven years. In the Intermountain West, where sunlight is plentiful and costs are low, it’s not unusual to see customers enjoy payback in as little as four to six years!
Remember too that solar is essentially a risk-free investment that will pay you back, often many times over. We all know that grid electricity rates will continue to rise — yet another factor that will make your payback period shorter.
The sun, in comparison, will remain the same price as long as it shines — free!
Here at Intermountain Wind & Solar, we love hearing from our customers who have achieved true energy independence and an improved economic position by adopting photovoltaic power.
Contact us today and let us show you how quickly on-grid solar will pay for itself at your home or business.