When it comes to measuring the ROI of solar panel installation, you’ll have to consider the solar payback period. The solar payback period is the amount of time that electricity savings from a solar system install begin to pay for the cost of installing the system. The shorter the payback period, the more significant the percentage of ROI.
There are two things you need to look at to determine the ROI for residential solar installation:
- Average cost of installing panels in the area.
- Revenue generated by a solar panel installation.
Upfront cost is pretty straightforward when you hire Encōr Solar to install your solar panels. We create a custom quote for your home that takes into an account how you historically use your power and square footage of your home. We also quote what approvals and permits from your jurisdiction and utility company you need to move forward. As far as revenue produced goes, revenue is calculated by the amount of energy the solar panels produce each year, versus the cost that would have been paid to the utility company if the same level of power would have been purchased from the utility company. If you qualify, you can use our zero down solar program.
Ultimately, the amount of solar energy that residential solar panels will produce is dependent on the weather. The more sunshine a locality gets, the higher the savings and ROI.
Solar Tax Credit
Can I take advantage of the solar Tax credit? The ITC (federal solar investment tax credit) – Until the end of 2019, the government is providing a 30% personal income tax credit towards the purchase of residential solar panels. That means if you pay $30,000 for your solar system, you receive $10,000 back through the ITC. The tax incentive is only available to those you pay income tax.
Solar Pay-Back Period – Cash
Solar Payback Period – Loan
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