Solar Panel Break Even Point

The solar panel payback period is a calculation that estimates how long it will take for you to break even on your solar energy investment.

Solar panel break even point.

The break even point when energy output equals manufacturing energy input has fallen from 20 years to just two years. This year most homeowners are paying between 2 87 and 3 85 per watt to install solar and the average gross cost of solar panels before tax credits is 16 800 says energysage s data. The tax break reduces. Solar panels are typically under warranty for 25 years.

This is called the break even point. Example of the break even graph from the solar nerd calculator. The graph above is a screenshot from the solar nerd calculator. Interpreting the solar nerd payback graph.

If you plan to sell your house sometime soon the shorter the break even point the better. For people expecting to own their home for a long time calculating the lifetime savings after the break even point is where the gold is. An average sized residential solar system about 400 square feet of solar panels costs 18 000 according to the solar energy industries association an industry group. Each time the world s solar capacity doubled the energy required to make a pv module fell by about 12 the economist said while carbon dioxide emissions associated with the process dropped by 17 24.

For example if you spend 16 000 on a solar panel system then get a tax break of 4 000 the cost after incentives is 12 000. Given that many solar panels and inverters come with 25 year product warranties you can expect more than two decades of trouble free operation from your solar array. However the savings after those seven to eight years can be quite significant.