Breakeven On Current Solar Panels

The highest efficiency solar panels on the market today can reach almost 23 percent efficiency.

Breakeven on current solar panels.

You ll break even after 8 years and start generating a return on your investment. This credit drops to 26 in 2020 and 2021 22 in 2022 and then will drop to zero after that unless renewed again by congress. Dividing 14 200 by 1 734 gives a solar payback period of about 5 8 years even if electric rates don t go up between now and then. The higher the current electricity price is in your area the more money you will save by going solar which results in a faster break even time hancock says.

Currently the break even cost of pv in the united states varies by more than a factor of 10 from less than 1 watt to over 10 watt despite a much smaller variation in solar resource. If a solar panel has 20 percent efficiency that means it s capable of converting 20 percent of the sunshine hitting it into electricity. On average upfront costs are 11 000 with savings of 1 400 per year on foregone energy bills. An average sized residential solar system about 400 square feet of solar panels costs 18 000 according to the solar energy industries association an industry group.

Solar panels are typically under warranty for 25 years so that s the standard figure used for the lifetime of a system although it s often much longer. Is just above 8 years. If your break even point is reached within 5 years and you expect to save at least 2 000 a year for electricity assuming you purchased the system with cash then you benefit from around 20 years of no electricity bills about 40 000. The tax break reduces.

The average solar panel payback period is 7 to 12 years depending on where you live and the cost of electricity. The solar energy our friend s panels make earns them an average of 24 cents per kwh. Therefore those 10 200 kwh will save them an estimated 2 450 in one year. In the united states the most important incentive for solar is the federal residential energy tax credit.

This year most homeowners are paying between 2 87 and 3 85 per watt to install solar and the average gross cost of solar panels before tax credits is 16 800 says energysage s data. The average efficiency of solar panels falls between the 17 to 19 percent efficiency range. The typical solar payback period in the u s. If your cost of installing solar is 20 000 and your system is going to save you 2 500 a year on foregone energy bills your solar panel payback or break even point will be 8 years 20 000 2 500 8.