Anyone curious about solar panel installations and technology will ask the question: "How long until I get my return on investment back?" After all, it's the primary motivation of Golden, CO homeowners and others across the country when buying solar panels.
Solar panels can slash from 80-90% of your traditional energy consumption because you're getting extra energy from the sun, which costs nothing to use. However, without proper storage technologies, some homeowners still go for traditional energy sources during the evening, which aids the daytime solar panel energy generation.
On average, a Golden, CO, house that has over 60-70 square meters will spend about $25,000 in total for the entire system, including other backends that the panels need.
If you spend $78-$100 a month in Golden, CO power, you can recoup your investments within 250-320 months, which is roughly 20-25 years if the entire solar panel system takes over your energy production.
Take note that you're spending $25,000 for a premium solar panel system because, on average, homeowners will spend about $9,000 for a 3kWh system, a system that's easier to pay back but has a smaller return on your savings.
Sun Badger Solar has a great post about calculating your solar panel return on investment. Read more about it below.
ARE SOLAR PANELS WORTH IT?
Simply put, solar panels are 100% worth it. Solar energy is a reliable and renewable energy source that serves as a great investment. Depending on how large your home is, how much energy you use, where you’re located, and how much sun your solar panels get, the payback period will vary.
Payback period refers to the amount of time after your solar panels are installed until they have paid for themselves. The rate at which they pay for themselves will depend on how efficient your panels are and how much you were previously paying for electricity. At Sun Badger Solar, we only use the highest-quality and most efficient panels on the market. That means you’ll have the shortest possible payback period. A typical photovoltaic system or PV system will see a 20% ROI in the first year.
Payback periods vary for every individual and solar system. Some homeowners will spend more on their system. Others use more electricity or live in an area where electricity is more expensive. Because of this, we can’t say for certain when the payback period will officially be over for you. But, we can say that on average this period will take roughly 7 – 10 years from the first payment.
ADVANTAGES OF TAX CREDITS
One way that solar panels quickly pay for themselves is through tax incentives. The solar tax credit allows you to receive a 26% tax credit on any money that you spend on your solar panel installation. That includes removing trees, roofing, permits, and more. Don’t wait to install your panels. In 2021 the tax credit goes down to 22%, and in 2022 it expires. Start installing solar before the tax credit goes away to ensure extra savings.
The math for this is simple. If you spend $20,000 to install solar on your home, then you’ll receive a $5,200 credit on your taxes in 2020. In 2021 you’d receive $1,000 less or $4,200 in total. That means instead of your solar energy project costing you $20,000, it’s closer to $15,000. What a HUGE savings!
Local solar incentives include refunds from power companies, statement credits, and more! You can learn more about state and local solar incentives in this blog post. Or, reach out to Sun Badger Solar and one of our knowledgeable solar rep’s can walk you through what’s available in your area. We’ve been installing solar for a while, and we’ve been able to help our customers get some great incentives.
RETURN ON INVESTMENT OF SOLAR PANELS
After you’ve made it through the payback period—which is usually around 7 – 10 years—and you’ve gotten your tax credits from the federal government, your solar energy system will be all profit. You’ll be able to start making some money. One way that solar energy can make itself more valuable is through net metering. (Continue reading here to learn more about solar panel return on investment)
If you have yet to find a dependable solar panel installation team in Golden, CO, you can always count on us at Roper Roofing and Solar. Contact us today to learn more about everything that we can do for you.