There are a lot of reasons to go solar. For one thing, it’s clean energy, renewable energy, and if it’s done right, you’ll have enough to power whatever you need. Sure, the upfront costs can be daunting. But when you breakdown what you’re really getting, you’ll see that your return on investment (ROI) will be more than worth it. Over time, you’ll end up paying 0 for your solar energy.
The average solar energy system can generate annual returns anywhere from 10% to 35%, and many will pay off their initial costs within seven to eight years. That leaves nearly two-thirds of the life of the solar energy system to generate clean energy for you, free and clear. Many solar energy systems have a 25+ year lifespan.
Here are four key factors that can affect your ROI and how soon you see that return.
1. The rate you’re paying for electricity now
The rate you pay for energy now and your current electric bill is a good place to start when trying to figure out how long it will take you to see a return on your rooftop solar panel system.
2. Financial incentives in your state
This can be state or local incentives for adopting clean energy systems, or even if you own a business and go solar there may be business-specific tax incentives or rebates available to you.
3. Making your investment count
Do the research because investing in the right solar energy system with the right partner will affect the quality of your materials and the quality of the install. It can even have an effect on how well your panels deliver solar energy, how efficient they are at converting the sun’s energy for your needs. Over the course of the lifespan of your solar energy system, these attributes will play a crucial role in making sure you pay less or nothing for longer.
4. The impact of solar on your property value
Adding renewable energy like solar to your home can make it increase in value. As new buyers look more and more for that eco-sustainable lifestyle, solar panels are likely to be a fantastic deal breaker when it comes to selling your home for a little bit more than you otherwise would.
With electricity rates at a historic high in many parts of the country, adding a rooftop solar power system to your home today will soon pay for itself. Just how soon is up to your key factors.