Whether your primary purpose for installing solar panels is convenience, a lower energy bill, environmental friendliness or any other reason, this sort of project is an investment for the future. Solar panels are built to last many years, converting your power needs into a more sustainable format – and like other long-term property upgrades, a major factor in the success of such an installation is your eventual return on investment, or ROI.
At Intermountain Wind & Solar, we're happy to offer a wide range of both residential and commercial solar panel installation and related solutions for a variety of clients. We've helped numerous customers understand and calculate their expected solar ROI, and we'll do the same for you as you work the numbers to determine if this is the right move given your needs and property characteristics. What are the important variables that impact solar ROI? This multi-part blog series will dig into several to keep in mind.
When calculating solar ROI, perhaps the single most important term is the "payback period." Essentially, this refers to how long it will take you to recoup the cost of solar installation through the savings solar panels provide you compared to your previous power source(s).
In many cases, especially if you take advantage of solar incentives we'll go over in a moment, a rough average for solar payback period among many property owners is about seven years. However, this can vary significantly based on the system you choose, your previous energy costs and needs, and more. Determining exactly how long your payback period will be, and whether a solar installation is worth it for you based on this period, involves going over several factors we'll dig into from here.
Firstly, there are some standard startup costs that you can expect for any solar installation:
While startup costs will vary based on your materials and the number of panels you choose, most initial investments tend to run in the $10,000-$20,000 range (this also includes installation in most cases).
If those numbers scared you, breathe easy – there are several incentive programs available to help cover some of these costs. They include:
For more on how to calculate solar panel installation ROI, or to learn about any of our solar installation or maintenance services, speak to the staff at Intermountain Wind & Solar today.
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