Solar Panel Return On Investment

As a follow up to the most recent post on solar payback periods, we will now consider solar panel return on investment.

This post can be seen as part two of the previous post about solar panel payback time frames. Instead of looking at solar ROI (return on investment) from a payback period point of view, we’ll now consider various rates of return now possible with residential solar power.

A typical solar panel roi is now substantially better than ordinary investment products. Common, low risk investments are typically in the 2 to 5 percent range. On the other hand, a homeowner can expect a roi for solar panels that is quite a few times greater than traditional investments. Also, unlike some investments, solar returns are as guaranteed as the sun rising everyday.

So what kind of rates can the typical homeowner expect from a solar panel system? Let’s consider a few examples.

Solar Power ROI

All examples involve a 5 kilowatt system that costs only $9,000 after tax incentives and rebates.

Example #1 (typically priced utility electricity) –

Cost of utility power – $0.15/kwh
Average monthly power usage – 900 kw
Yearly cost for electricity without solar – $1,690
Cost offset by solar (80 percent) – $1,296
Solar ROI is $1,296/$9,000 = 14.4%
solar panel return on investment
Example #2 (high priced utility electricity) –

Cost of utility power – $0.25/kwh
Average monthly power usage – 900 kw
Yearly cost for electricity without solar – $2,700
Cost offset by solar (80 percent) – $2,160
Solar ROI is $1,296/$9,000 = 24%

Example #3 (low priced utility electricity) –

Cost of utility power – $0.10/kwh
Average monthly power usage – 900 kw
Yearly cost for electricity without solar – $1,080
Cost offset by solar (80 percent) – $864
Solar ROI is $864/$9,000 = 10%

Of course, impressive rates of return greater than 15 percent are only possible with access to very affordable solar panel installers. However, the average return on investment for someone going solar is still a considerable 10 to 15 percent.

Getting a great return on your money coupled with the idea of doing the right thing from an environmental point of view is a double win. This is the power that solar now holds for our society.

So whether you’re just looking for a great solar power return on investment, trying to reduce your carbon footprint, or both – solar power is increasingly the answer.

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15 Responses to Solar Panel Return On Investment

  1. Price for system I want is a ground mount, 6.76, 26, 260 panels. Since I am not eligible for rebates is $25,000, too much to pay. This is is mass. Where utility is high. Thank you.

    • nickt says:

      Hi Cynthia. Thanks for the comment. Actually, here is a better way to look at it. If you do nothing and continue renting all of your electricity, you will spend at least $50,000 over a 25 year period. Or you could go solar and spend closer to $30,000 by financing your system that would last at least 25 years. Which is better – spending $30,000 on solar or doing nothing and spending $50,000?

  2. Curio says:

    In conclusion, investing in solar panels can provide a significant return on investment. With the potential to generate clean and renewable energy, solar panels not only help reduce electricity bills but also contribute to a more sustainable future. The initial cost of installation may be high, but the long-term benefits, including savings on energy bills and potential government incentives, make it a worthwhile investment. Additionally, as technology advances and solar panel prices continue to decrease, the return on investment is expected to improve even further. Overall, solar panels offer a promising opportunity for individuals and businesses to not only save money but also make a positive impact on the environment.

  3. Essex says:

    In conclusion, investing in solar panels can be a highly profitable decision with a significant return on investment. The long-term benefits of reduced energy bills, government incentives, and the potential to earn money through excess energy generation make solar panels a smart choice for both residential and commercial properties. While the initial cost may seem high, the savings and returns over time make it a worthwhile investment that not only contributes to a sustainable future but also provides financial gains.

  4. Easy Mac says:

    In conclusion, investing in solar panels can provide a significant return on investment. Not only do solar panels generate clean and renewable energy, but they also help reduce electricity bills and potentially earn money through excess energy production. With the decreasing cost of solar panels and various financial incentives available, the payback period for solar panel installations is becoming shorter, making it a smart long-term investment. Additionally, solar panels contribute to a greener and more sustainable future by reducing carbon emissions and dependence on fossil fuels. Overall, the return on investment for solar panels is not only financial but also environmental, making it a worthwhile investment for individuals and businesses alike.

  5. Trigger Warming says:

    In conclusion, investing in solar panels can provide a significant return on investment. By harnessing the power of the sun, individuals and businesses can reduce their reliance on traditional energy sources and save on utility bills. The initial cost of installing solar panels may seem high, but the long-term savings and potential for generating excess energy make it a worthwhile investment. Additionally, with the availability of government incentives and tax credits, the payback period for solar panel installations has significantly decreased in recent years. Overall, solar panels offer a sustainable and financially beneficial solution for both individuals and the environment.

  6. Mad Jack says:

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  7. moonflower says:

    In conclusion, investing in solar panels can provide a significant return on investment. The cost savings from reduced energy bills and potential government incentives make solar panels a financially viable option for homeowners and businesses. Additionally, the environmental benefits of using renewable energy sources cannot be overlooked. While the initial investment may be high, the long-term savings and positive impact on the environment make solar panels a wise investment choice.

  8. Killer Curio says:

    In conclusion, investing in solar panels can provide a significant return on investment. Not only do solar panels help to reduce electricity bills, but they also contribute to a cleaner and more sustainable environment. With advancements in technology and decreasing costs, the payback period for solar panels has significantly decreased in recent years. Additionally, various government incentives and tax credits further enhance the financial benefits of investing in solar panels. Overall, considering the long-term savings and positive environmental impact, solar panels offer a compelling return on investment for individuals and businesses alike.

  9. jetta talent says:

    In conclusion, investing in solar panels can provide a significant return on investment. Not only do they generate clean and renewable energy, but they also help reduce electricity bills and provide long-term savings. With the declining cost of solar panels and various incentives and tax credits available, the payback period for solar panel installation is becoming shorter. Additionally, as energy prices continue to rise, the return on investment for solar panels will only increase over time. Therefore, investing in solar panels is a wise choice for both the environment and financial stability.

  10. Hoboken Nightingale says:

    In conclusion, investing in solar panels can provide a significant return on investment. Not only do they help reduce electricity bills, but they also contribute to a cleaner environment by utilizing renewable energy sources. With the decreasing costs of solar panel installation and the potential for government incentives, the return on investment for solar panels is becoming more favorable. Additionally, the long lifespan of solar panels ensures that the return on investment continues for many years. Overall, investing in solar panels is a smart and sustainable choice for individuals and businesses alike.

  11. Murder Cherry says:

    In conclusion, investing in solar panels can provide a significant return on investment. By harnessing the power of the sun, individuals and businesses can reduce their reliance on traditional energy sources and save money on their electricity bills. The initial investment may seem high, but over time, the cost savings from reduced energy consumption and potential government incentives can offset the upfront expenses. Additionally, solar panels have a long lifespan and require minimal maintenance, making them a reliable and sustainable investment. Overall, the return on investment for solar panels is not only financial but also environmental, contributing to a greener and more sustainable future.

  12. Heaven Sent says:

    In conclusion, investing in solar panels can provide a significant return on investment. With the ability to generate clean and renewable energy, solar panels can reduce electricity bills and even generate income through selling excess energy back to the grid. While the initial cost of installation may be high, the long-term savings and potential income make solar panels a worthwhile investment. Additionally, as the cost of traditional energy sources continues to rise, solar panels offer a stable and predictable source of energy. Overall, the return on investment for solar panels is not only financial but also environmental, contributing to a sustainable future.

  13. Alpha says:

    In conclusion, investing in solar panels can provide a significant return on investment. With the rising costs of traditional energy sources and the increasing demand for renewable energy, solar panels offer a sustainable and cost-effective solution. The initial investment may seem high, but over time, the savings on electricity bills and potential government incentives can offset the costs. Additionally, solar panels have a long lifespan and require minimal maintenance, further enhancing their return on investment. Overall, solar panels are a smart investment for those looking to reduce their carbon footprint and save money in the long run.

  14. Skirble says:

    In conclusion, solar panels offer a promising return on investment for individuals and businesses alike. With the increasing cost of electricity and the growing awareness of environmental issues, investing in solar panels can provide long-term financial benefits while reducing carbon emissions. The return on investment for solar panels is dependent on various factors such as location, energy consumption, and available incentives. However, with advancements in technology and decreasing installation costs, the payback period for solar panels has significantly reduced in recent years. Overall, solar panels are a sustainable and economically viable solution for those looking to reduce their energy costs and contribute to a greener future.

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