Did you know that 59% of people that choose to switch to solar panels did so with the motivation to save money? For some people, spending too much money on electricity seems like a waste. However, solar panels present a cost-saving option, although what really is included in solar ROI?
Don’t worry; with this guide, you can find out! From understanding the factors that affect the final calculation to how you can do it yourself, you’ll save money in no time with these easy tips.
Now, are you ready to dive in? Here’s an in-depth look at solar panel ROI:
The Factors that Affect Solar ROI
Think of your solar panels not just as a purchase but as a financial investment. Although, those annual returns come after you pay off your solar panel purchase. Most people pay it off in about seven to eight years for their residence where a solar system on your business ROI is 3-5 years and enjoy the remainder of their solar panel lifespan, receiving free electricity for decades to come.
To calculate your yearly returns, simply divide each financial benefit you receive by your initial purchase price. However, numerous factors affect your solar ROI, including:
Calculate your recent electricity bills to see how much you’re paying. This can overtime determine the savings of your solar panels. The higher your bills are, the more you can save with solar energy.
Before purchasing a solar panel, did you compare prices? If so, were you able to use tax credits or rebates to lower the price? A solar panel that costs less will have a shorter payback period.
Determine if they’re any local or state rebates or federal tax programs that encourage solar usage. In fact, if you’re a business organization, you can take advantage of the benefits that are offered to you. After all, higher incentives produce lower upfront costs and even include a shorter payback period.
Did you purchase the most efficient solar panels? For example, does it produce electricity at an ideal level? An effective system will cancel out a larger percentage of your monthly bill.
Calculate how much your property has increased since installing solar panels. By owning a solar panel system, resale value usually increases; however, if you’re leasing, sometimes property value won’t be increased.
Calculate how much more profits you’re able to save due to your lower-cost solar panels. In addition, determine what the exact value of your solar panel is. These factors will help you gauge your final ROI.
Final Solar Panel Payback
If you consider the above factors, you can get a good estimate on when your solar panel payback period will be. Your solar payback period is one of the best ways to put an exact number on your solar ROI.
After all, the solar payback period is the time it will take you to earn the money you spent on the solar panels. For instance, if your payback period is around eight years, after that time, you can start calculating your actual solar panel ROI just by looking at electricity rates and your electricity usage.
Calculate Your Solar Panel ROI Today
Finding your solar panel ROI can seem challenging. However, if you keep in mind all the factors that contribute to the payback period, you’ll be able to calculate your solar panel ROI easily and efficiently.
If you’re interested in calculating your solar ROI, contact us today. We look forward to helping you!