Quote:
Originally Posted by ToddF
Solar electric (PV) has a payoff of about 20 years with US incentives. The modules last about 40+ years so there is some payback.
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Quote:
Originally Posted by workinman
i just read that 10 years is actually the max payback time.. the national renewable energy labs states "modules installed under average US conditions reach energy payback in 3 to 4 years."
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There are too many variables, in calculating the payback on solar power, to give a generic answer that will cover all locations in a community, let alone an entire country. I have done solar payback analysis for neighbors who've had dramatically different results.
The main factors involved in calculating payback are:
- How much electricity you use
- The rate structure your utility company uses to charge you for that electricity (is it tiered? is it time-of-use?)
- Available incentives such as rebates and tax credits
- The inflation rate for electricity
- Cost of Equipment and Installation
- Interest rate of financing, and loan terms (if the system is being financed)
In California, common payback times are between 7-12 years for homes, and 5-10 years for businesses. Our electrical prices range from 11 cents to 36 cents per kilowatt-hour depending on how much you use, and the historical inflation rate for electricity is about 6.4%. People with large electrical bills see a tremendous investment in solar, while people spending under $100 per month rarely have systems put in.
Your best bet is to get in touch with a Solar professional that can put together a proper analysis. Quotes for grid-tied solar systems are almost always done for free, and any solar company worth their salt will do a proper financial analysis on the system.
Just be sure to check a company's projections with third party tools. This is easier than you might think.
PVwatts and the
CSI-EPBB Calculator are two, easy to use tools, that can help you make sure a contractor isn't over estimating the production of a system.