Advantage Of Solar Panels Contrasting The Grid Electricity

People frequently get caught up in the payback period of solar panels but they never seem to ask themselves:

“What is the payback term or ROI of using grid electricity?” 

Isn’t a payback period of 15 to 20 years better than a continuous payback period?

Another way of thinking about this investment is to relate it to a vehicle or a house.  You wouldn’t rent an apartment for 30 years, would you?  You wouldn’t rent a vehicle for 30 years, would you? 

Yes, it is a major up-front investment but it makes much more sense to purchase your home/vehicle to save money over the long-term and make equity in the asset.

With this in mind, it is essential to correlate the relative payback period of solar panels. This is done by observing how much money would be spent on continually renting grid electricity vs. owning your solar power.   Using the same model and assumptions, as shown above, the results are explained.

Payback Period of Solar Panels

The payback period for solar panels varies from place to place. It is moderately staggering to see how much money is wasted on continually renting electricity for 30 years.  This article shows that you might save $100,000 over a 30-year span.  Given that value is future dollars which have not factored inflation or discounting.

Many people get hung up on the ‘long’ payback period but don’t frequently consider that by not using solar power, you are still giving away thousands of dollars every year with no results or equity in a tangible asset.

The relevant payback period gives a more accurate portrayal of how much money you are saving/earning from an investment in solar panels. 

Conclusion

I hope you reflect on the whole financial scenario when deciding whether or not to buy solar panels.  Yes, it is a major upfront cost but much like buying a home, the cost will pay back over time. 

As the efficiency increases and the price of solar panels decreases, the relative payback period for solar power systems will continually become even more favorable for consumers. 

Typically, every scenario will differ somewhat so these returns may not be the ones that you will see, but the overall outcome will be the same and in almost every case:

Investing in solar panels is a financially reasonable long-term decision. And, there are many companies you can choose from.  Wouldn't it be amazing to settle into a great deal with a company that can offer you some great deals while giving you the certainty of product integrity? 

Curious about solar hard costs vs. soft costs near you, and how that might affect your own solar panel pricing? We here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month. Please visit our solar blog to find out more about the benefits of going solar.