What Is Solar Electricity Payback?
Solar electricity payback is the money that you save from installing a solar powered hot water or heating system.
You do not experience payback until the money you have saved on your electric bills has accumulated to exceed the amount that you paid to have your solar power system installed.
How Long Does Solar Electricity Payback Take?
Solar electricity payback takes anywhere between 3 and 22 years to achieve. For the average family home, situated in a temperate climate, solar electricity payback is currently achieved in around 5 or 7 years.
How long solar electricity payback takes depends on the type of system you buy, its efficiency, the climate you live in and the cost of electricity in your area. The government grants you are entitled to also play a significant role in how quickly your solar electricity system will pay for itself and generate an income for you.
In some places, it is possible to sell excess electricity that your solar panels produce back to the national grid. How much you are paid for that excess electricity is also a factor in how quickly your solar electricity system pays for itself and begins to make you money.
As you can see, how soon your solar power system will pay for itself and start to generate payback is a complicated calculation. When considering buying a system you need to get several quotes and ask for a solar electricity payback calculation. Most reputable installers offer an extensive and free assessment that includes a solar electricity payback calculation.
Also, bear in mind the fact that having solar power installed in your home has been shown to speed up the time it takes to sell your house. In most countries, having solar power installed actually adds value to your property.
The Future of Solar Electricity Payback
The good news is that the cost of installing a good solar power system is falling all the time, whilst the cost of electricity is continuing to rise. This means that the time it takes to get payback from installing solar power is getting shorter all the time. Greater demand and better manufacturing techniques mean that the cost of installing solar panels is likely to continue to fall drastically.
Newer solar power systems are also more efficient and generate more power, which also speeds up payback. Installing solar power in your home makes economic sense as most systems have a 25-year warranty. Therefore, you are practically guaranteed to experience payback before you system needs to be replaced.