The popularity of residential solar panels has been steadily increasing for decades. It’s a trend driven by two primary motives: reducing monthly electric bills and helping the environment. Improvements in photovoltaic technology mean solar panels are capable of producing more energy than ever before, and sleeker, thinner panel designs give them a much lower profile than earlier models. In fact, most systems are all but invisible once they’ve been installed.
Of course, what every homeowner wants to know before taking the solar plunge is whether or not these systems are worth the investment. While there’s no doubt your electric bills will be cut dramatically, there is a significant initial expenditure. Eventually, your monthly savings will pay for your solar power system. The question is, how long will that take? Here are some of the factors that will affect your solar panel payback period.
The price of your solar power system will be determined mostly by how much power it can generate. The bigger the system, the higher the cost. Choosing the right size for your home will depend on how much electricity you use and whether or not you want to be entirely self-sufficient.
Average Electrical Usage
The more electricity you use, the shorter your solar payback period, right? Well, it’s not quite so straightforward. Electricity costs fluctuate over time, so what you’re paying now probably won’t be what you’re paying five years from now. Usually, utility costs go up, and this would shorten your payback period. There can also be daily variances, where a utility charges more for electricity during peak consumption times. As a general rule, however, the more energy your household uses during peak hours, the bigger the savings.
Power generation isn’t only dependent on panel size. Sunlight exposure also plays a big role. If your home has a lot of shade trees around it or you live in a region that gets plenty of cloud cover, power production will be lower. And let’s not forget incentives, rebates, and tax credits. These will vary from state to state, but every homeowner should be able to take advantage of one or more opportunities to reduce installation costs, which in turn could lower the payback period by three or more years.
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The best way to calculate YOUR solar savings and if the investment is right for you is to meet with a Nu Look Solar expert. In less than an hour, we can review your current situation, calculate the amount of energy your house can produce, and determine when the savings from solar will cover the initial cost. Schedule your Solar Consultation Today or call 410-636-1650.
Nu Look Solar can install solar panels that will provide decades of reliable power for your home. Reach out to us today to learn more. We are the premier solar specialists serving homeowners across the Mid-Atlantic region.