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what's the best way to calculate the pay off time for solar panels to pay for themselves
Use one of the payback calculators that most solar energy sales orgs have on their websites. Best results will usually be found on a local area site, because pay back time is VERY location specific, depending on local geography and weather patterns; orientation of your roof and available area; local utility costs; local, state and federal incentives available, etc., because all will affect the calculation.
Or, if you're a glutton for punishment, you could ask a local installer to figure it out for you.
If you are a real glutton for punishment you can research all of what OpenD mentioned the calulators do for you and figure it out yourself. If payback is a very big concern, then I suggest you do the calculators and then double check the math they used... I trust, but verify.
And it will still just be a guess, because unless you have a crystal ball and can tell me what power company rates will be like over the next 25 years, it will just be a guess at best. You have to take the entire anticipated life span of the system into account as well. Granted, your payback will hopefully be in the 5-10 year time frame.
Location: Central Atlantic Region, though consults worldwide
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Quote:
Originally Posted by krelithous
what's the best way to calculate the pay off time for solar panels to pay for themselves
OpenD is correct. I'll add to his list use 20 years solar data (often non-exists in many areas.) And secondly local area airborn particulant pollutants. You'll have to keep those panel clean to reap all they can give.
It really depends on how much you pay for your panels. I've been buying up panels at government auctions for years for pennies on the dollar. You recover your money in no time.
what's the best way to calculate the pay off time for solar panels to pay for themselves
Passed my break even point in 25 months...
The answer your are looking for depends on the size system your install, what your energy use was before and after. I keep my own excel calculator to chart my savings.
My Installation Cost
Installed 9/2012 the final price for (20) 4,800 Kw panels plus new electrical box installed was $21,000.
Less local utility rebate $8400,
out of pocket $12,600. (three installments of $1500, $4800, $6300)
Tax returns filed for a Federal $6300 and State $5250 rebate.
Our tax refund plus what we got back in rebates, cost around $4800 out of pocket.
My Calculations
Before Solar 12 month balance billing = $2880.00
Before Solar monthly balance billing = $240.00 (< same amount each month)
Before Solar daily cost = $7.89
On Solar total days = 820 as of 12/2014
On Solar electric charge pulling from utility company = $1150.00
On Solar daily average cost = $1.40
My Return on Investment
Daily Savings = $7.89-$1.40 = $6.49
Cost divided by daily savings = $4800/$6.49 = 739 days (< break even point)
*** Strong advocate for purchasing solar energy - not leasing.......
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