What is a Solar Panel System Payback Period? How is it Calculated?
As homeowners in South Central Texas look for ways to save money on electricity costs and achieve greater energy independence, solar has emerged as a viable, reliable, and safe piece of the puzzle. As you research solar panels for your home, you’ll almost certainly encounter the term “payback periods”. This is essentially the amount of time that it takes to recoup your upfront investment in a home solar panel system and for the panels to begin paying you through monthly energy savings. Upon installing panels, you’ll experience an immediate reduction in monthly electric bills, but it will take these savings some time to build up enough to reach the payback point. Factors Included in the Solar Payback Period The solar solutions specialists at GVEC can help homeowners understand the payback period in greater depth, but here are some important cost and savings factors included in estimating it. Cost of the system itself Installation cost Cost reimbursement from the federal investment tax credit (ITC) (26% through the end of 2022) Cost reimbursements through any potential rebates Solar capacity and monthly electric bill savings Any additional monthly reimbursements from selling excess solar power to GVEC or to your electricity provider 1. System...
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