EnergySage, a leading online marketplace for clean energy, has revealed that the average solar shopper on their website breaks even on their solar purchase in about 7.1 years. Considering the lifespan period of most solar systems, solar shoppers could enjoy savings or substantially reduced energy bills for almost two decades after this solar payback period.
The solar payback period is defined as the amount of time it takes for a homeowner to begin seeing savings from their solar system.
This payback period is calculated by taking the total cost of the solar system (after incentives) and dividing that by the amount you would have spent on energy costs annually.
Based on data from EnergySage's Marketplace, the average cost of a solar system on EnergySage is about $20,552 after the federal tax credit and additional incentives. The average annual energy cost comes out to about $2,895. The solar payback period is thus calculated as: $20,552/$2,895 = 7.1 years.
Of course, these figures will vary depending on your state's solar incentives, local energy prices, and your energy usage. Use EnergySage's free tools to get quick estimates for your solar installation projects and to compare quotes.
Going solar may be one of the easiest ways to save money on home energy. The large upfront cost of installing solar is offset by a quick payback period — just over seven years — which means that homeowners will enjoy almost 20 years of free or significantly low energy bills.
Solar users have reported an almost 60% reduction in their monthly energy bills, which adds up to a lot saved by the end of the year.
Solar is also a cleaner and renewable energy source, which helps reduce planet-warming gases in the atmosphere produced by burning dirty fossil fuels for energy.
With independent energy generation, your home also becomes much more resilient, especially in the face of extreme weather events and their consequences, such as power outages. This futuristic induction stove may also be worth investing in, as it performs exceptionally well, particularly during power outages, because the stove contains a battery that stores enough energy to keep you running when the lights are out.
"Payoff period on solar is better than making a utility payment in almost any place on earth," one commenter said in a Reddit post on solar payoff periods in the r/solar subreddit.
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The cost 💰 "My payback period is 7-9 years and I am 4 years in. Even if my payback period was longer it'd still be better than throwing 100% of my money away to the utility," another commenter wrote under the Reddit post.
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