Setting your house up for solar is a costly undertaking, and everyone wants to know if it’s worth it to do some. The truth is, energy providers are raising price all the time, with the current average being 0.13 per KWH. In comparison, a solar system will be priced at around 6 cents per KWH.
However, the really important bit here is knowing how long it will take for your solar setup to pay for itself. Which, of course, depends on many other factors, like how many solar panels you need, the energy efficiency of your area, and the energy needs of your specific home.
How Long Until A Solar Set Up Pays For Itself?
In general, you can expect 9-12 years in pay back time for your system. However, the minimum life expectancy of a solar panel is 25 years and many brands will last MUCH longer than that. Once the system has paid for itself, you are generating free power after the fact.
You may also be able to reduce the payback time and, essentially, your cost per kwh by snagging the many government tax credits available to those who install these systems.
Unfortunately, the payback time will also be impacted by your area. If you’ve read our other alternative energy articles, you’ll know that some locations, such as the mid-west, are more efficient for solar. This means you’ll need less panels, and you’ll pay less money to get started – lowering your payback time.
Using Tax Credits To Lower Costs
There are many options for lowering the cost of your solar system. For starters, the federal government offers a 26% tax credit you can utilize. However, you should also do some checking with your local government, your state, and your utility company.
It’s possible you could claim additional benefits here, and some power companies will even allow you to sell power back to the grid if you generate more than you can use. Can you make your home more energy efficient to produce a surplus of power? It’s time to cash in, if so.
Bob learned about farming from his grand dad. So, the decision to leave the city and start homesteading was not a difficult transition. He now lives with his wife and two kids on their 30 acre property in Ohio.