Chapter 9-Payback of your solar electric system

The payback time is the amount of time it takes after you bought a solar system for it to start making you money.This is generally though of as:

Cost of system/Yearly savings off your bill=Paybacktime

In other words,once your solar panel system has saved you more off your power bills than it cost you to buy it,its payback time is over.Each time the sun shines,you're literally making money.

There are the factors your solar system payback time:

1.Price of system -This is covered in the chapter above.However you can certainly look for a good deal on solar energy systems.The less you pay,the shorter the payback time.It's still important to make sure that you are buying quality,backed by a guarantee.

2.YOUR POWER BILL- If you are  being charged an expensive rate for your power,your payback time will be shorter.The way to work out your power rate is in $/kw.On each power bill,there is a monthly amount for KW used.
Take this amount,and divide it by your power bill minus the fixed rates,(fixed rates are what you pay the power company anyway,regardless of how much power you are using)This will give you your power rate.
The average cost for electricity in America is$0.10 per kw.

3.Energy Prices-This you can't control,however,the faster energy prices rise,the quicker your solar panels will pay themselves off.This is because your solar system will save you more money off your power bill.Your solar panels make the same amount of energy,but this energy is more expensive.Therefore,you spend less on expensive power.

4.Your house value Studies have shown that solar panels add to the value of your house.This value  added is approximately 15times the yearly power bill savings.Here's one such study

Oregon Realtors-Solar value added to Hourse Resale.

For example,if your solar system saves you $500 in the first year,the system has added about $7500 to the value to your house.

For solar electric panel payback time,go and check this Solar calculator-that will give you an estimate of payback time.

NB.It is important to realize that values from the solar calculator are estimates of paybacktime,and cost.When installing solar,it's recommended to get a professional costing because there are so many variables that affect your solar panel performance.

5) Warranty-When selecting a solar supplier,make sure that you are getting a suitable length ofwarranty for the solar system. Solar electric systems should be warranted for 20-25 years.Inverters can also be warranted for 2-5years.

The reason why a warranty is so important is that solar panels are a long term investment.By having a longer warranty,you are guranteeing that you will get your return on investment.