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Solar Panel ROI: When Do You Get Everything Back?

Solar panels are a huge boon to saving energy and the Earth at the same time. However, you might want to know how soon you can get your return on investment back. The technology isn't the most affordable, but it's one of the most effective. It does mean you need to get your savings back in order and fast.

High-quality solar panels can replace your entire electrical consumption from traditional coal plants. With solar energy storage, you have a nearly infinite supply of energy in your home. However, the expensive nature of storage tech forces homeowners to use coal-generated electricity at night.

With these factors in mind, we can say that a house with 60-70 square meters will spend about $25,000 - $30,000 for a solar panel system. These include all the circuitry and other backend factors requiring specialist installations. This system will return your investments within 250 - 320 months, roughly 20-25 years after you've installed the system, if you spend around $78-$100 in solar power generation.

For middle-range solar panels, you might spend about $9,000 for a small 3kWH system, which won't generate more energy than a premium solar panel system but is easier to get a return on investment.

Sun Badger Solar has a tutorial on calculating your total solar energy consumption. Read more about it below.


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.


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.


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)

Trust Roper Roofing & Solar to provide top-notch solar panel installations. With decades of experience and as a GAF Timberline Solar Shingle installation team, we provide only the best results for our services. Call us today.


795 McIntyre St. Suite 303
Golden, CO 80401
Phone: 720-809-7586

7421 Brecourt Manor Way
Austin TX 78739
Phone: 512-305-3695



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