Solar Panel ROI and Financing Options
Solar Panels Amazing ROI (and three ways to make it even better)
Quick, which of these three home improvement projects offers the best ROI (return on investment)? Remodel the kitchen, replace the windows, or add some solar power?
The answer is shocking for HGTV watchers who love the big unveiling of a snazzy new kitchen. Yes, some home remodeling projects return up to 100 percent of their value when the house is sold, but granite countertops have nothing on solar panels.
And you don’t have to sell your house to enjoy the financial benefits of solar.
Here is how solar can pay for itself in as little as five years and how it can generate many times ROI over the 25-year life of your system. (Why 25 years? Because that is how long a Go Solar energy system is guaranteed for both quality and performance.)
The Basis of ROI: How Much Will This PV System Cost & Payback Period for Solar Panels
The cost of a solar energy system is affected by a lot of different variables, but Go Solar has installed enough systems across Utah to know what an average system looks like.
It is a six kilowatt system with about 22 solar panels and a cost of about $30,000. And while that sounds like a lot (it’s the price of a new Ford F-150), that is not the actual price you pay.
The price of a solar energy system is offset by a 30 percent Federal Tax Credit and a $2,000 Utah State Tax Credit. These credits mean the total cost of the average system is just $19,000, that’s still a good chunk of change, but still probably less than you paid for your last car. (And unlike a car, solar energy makes money instead of costing money.)
So the cost is $19,000. How soon will you make back that money?
Because buying a solar system effectively locks in today’s power prices for the next 12 years, the primary drivers of ROI on solar panels are:
the cost of financing the purchase (since most people don’t have 19 grand laying around)
the cost of electricity from the power company
the price of electricity you sell to the power company