Break Even Point Solar Panels

The cost of solar panels.

Break even point solar panels.

The break even point when energy output equals manufacturing energy input has fallen from 20 years to just two years. Example of the break even graph from the solar nerd calculator. And when will i break even. The graph above is a screenshot from the solar nerd calculator.

Then if the solar energy your panels make reduces your electric bill by 1 500 per year your payback period would be eight years assuming electricity rates don t increase. Solar panels are typically under warranty for 25 years. Interpreting the solar nerd payback graph. The solar panel payback period is a calculation that estimates how long it will take for you to break even on your solar energy investment.

If you buy a system depending on the incentives available to you break even point should be around eight years or less. Given that many solar panels and inverters come with 25 year product warranties you can expect more than two decades of trouble free operation from your solar array. This is called the break even point. For example if you spend 16 000 on a solar panel system then get a tax break of 4 000 the cost after incentives is 12 000.

If you plan to sell your house sometime soon the shorter the break even point the better. Increased utility electricity rates and lower equipment costs are making it easier and less expensive to for homeowners to own rather than lease their solar panel systems.