If you are considering a rooftop solar power system, you’re probably curious about the payback period. In other words, how long will it be before you reach the point when your system has paid for itself?
Several factors affect the payback time, and the answer is different for every customer. Consider the following information to get a better idea of how quickly you will see a return on your investment in solar energy.
According to the latest U.S. Solar Market Insight report, the average installed cost of a residential rooftop solar system was $4.43/watt.* Now, let’s say you need a 6-kilowatt system to supply your power needs. Your initial investment would about $26,000.
While that may seem expensive, your investment will actually be much lower when you figure in the tax credits and financial incentives available today.
Currently, the federal tax credit equals 30 percent for rooftop solar system installations (though this figure is slated to drop to 10 percent next year). Any available state and local rebates or incentives can further reduce your investment by as much as $10,000.
Taking advantage of these offers will significantly shorten the payback period on your system.
*It’s also important to note that, despite the reported national average, Intermountain Wind & Solar is usually able to provide an installed residential system for much less per watt!
Now, consider the cost advantages provided by net metering.
Did you realize that, if your rooftop solar power system is connected to the electrical grid, you can actually earn money with the sun’s energy? If your system produces more electricity than you need, the utility companies are required by federal law to pay you the retail rate for any excess.
This means that instead of getting electric bills, you can receive a credit for the amount of energy your system produces. Then, at the end of the year, you may request a cash payout of the credit on your account.
This will help you see a payoff much sooner.
The size, design, placement and efficiency of your rooftop solar power system will influence how quickly you reach the payback point.
Here on our website, you can find out the estimated energy costs and the way your system will operate. Plug in data regarding your power needs, and our calculator will tell you how much money you can expect to save.
Keep in mind that, although this information can be helpful in figuring out how long it will be before your system has paid for itself, every customer’s needs and location are different. The best way to learn exactly how long you can expect to reach the payback point is to speak with our experienced team.
Contact Intermountain Wind & Solar today to schedule a consultation. We can show you exactly how much money you can save by adopting PV rooftop solar at your home or business.
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