The topics on return on investment on solar panels are often debatable for a lot, especially if the knowledge is only from hearsay or unreliable information. There is a perception that solar panels are expensive and only for the rich – while there is some truth to it to an extent since there really is an upfront cost incurred by the installation of solar panels. If we look at the full context and compare net values, solar energy may as well be our cheapest option to generate power and electricity.
The long-term economic stability and solidity of solar technology are based on the fact that it is a natural energy source – such as wind and water. Investing in a solar energy system can have extremely powerful financial benefits to one’s household.
How long before a solar power system pays for itself?
Solar power systems are considered investments – and one of the most common queries that we have whenever we invest in something is “how long does it take before it covers the initial outlay?”
To get your solar panel investments up and running, an initial outlay that goes up to $12,000 is needed to purchase a 5-kilowatt photovoltaic (PV) system that includes the cost of the fundamental components of a system which are the following: solar panels needed to capture the sun’s rays and transforms them to the energy that is used in powering up utilities, batteries to store energy, and an inverter that converts stored energy to the voltage needed in operating electrical equipment.
According to research done in the Philippines, if enough solar panels are installed to cover the average electricity consumption per month, the household can potentially save up to $1,400 every year, with the possibility of not having to pay for electric bills at all.
Solar panels at the very least will last, under normal and regular usage, for two decades. Wiring and the like will face longevity if well-taken care of, and inverters can last for more than a decade. The payback period is the time it takes for your solar panels to pay for themselves after their installation. It depends and varies accordingly for each solar system. There is no uniform payback period for each owner but it takes an average of 7 years up to a decade from the initial payment.
Do you think the return on investment on solar is worth it?
A lot of people invest in their own solar systems primarily because of their economic and financial benefits. First of all, it reduces or even eliminates electric bills. Electricity makes up a big portion of a household’s expenses and solar panel systems enable you to generate free power for your household.
Having your own energy source and system also avoids you being affected by the rising energy costs which happen almost annually. You are able to secure a constant cost for your household and protect yourself from the constant rise in electricity costs.
Solar panel systems increase property value. When the time comes, homes that have their own solar energy systems actually sell far better than those without.
If we take a bigger look at the long-term rebates of investing in solar panels, we are able to see a huge amount of savings that can be used to pay for other expenses. There is no doubt that it is a great investment and an average user of solar systems is able to observe a 20% or more return on investment.