#SOLAR CONTRACTOR EXPENSES HOW TO#

The length of your payback period can range widely, from five to 15 years. To use these, youвЂ™ll probably need to know how much your utility company charge per kW hour of electricity, as well as the amount you use each year. There are also plenty of solar breakeven calculators that can make number-crunching easier. This falls just under the reported national average payback period for solar installation at around 8 years. ($18,000 solar system вЂ“ $5,400 in tax credits and state rebates) Г· ($1,800 in yearly energy savings and state incentives) = 7 years.(Total cost of solar system вЂ“ any upfront incentives) Г· (yearly savings + any annual utility/state incentives) = Your projected payoff period.If solar seems like a good fit, when can you expect to see a return on your investment? Use this simple formula to come up with an estimate: The upfront cost of solar is likely to be worth it if you plan to stay in your home for up to 10 years and meet the other installation criteria listed above.

#SOLAR CONTRACTOR EXPENSES HOW TO#

How to calculate your solar payback period Upfront installation costs donвЂ™t include the federal tax credit you may be eligible for, enabling you to deduct up to 26 percent of the cost of solar installation. The average payback period ranges from 9.3 to 12.6 years, with an electricity bill offset of 74 to 100 percent. In Texas, for example, you may pay anywhere from $11,432 to $15,467 in upfront costs for installation, expecting to net from $14,086 to $19,057 in 20-year savings.

If you feel like youвЂ™re a good candidate, the easiest way to find out the cost of solar is to search for prices in your state. Though solar can help boost your homeвЂ™s value, selling in the near future may not give you time to recoup your investment. YouвЂ™re going to stay in your home for a while.The average homeowner may save from $10,000 to $30,000 on energy (and take the equivalent of one car off the road a year). You want to cut your electricity bills.If your roof isnвЂ™t optimal, solar panels could also be installed on shed, carport, and patio roofing that meets criteria. You have other buildings getting sun exposure.Solar is common in sunny states like California and Texas itвЂ™s also important that your house doesnвЂ™t get too much shade. South, West, and Southwest-facing roofs receive the most direct sun exposure, needed to generate enough energy for a solar system. Solar panels can be installed on almost any roof material - as long as the roof isnвЂ™t damaged. You need to own a property to authorize the installation of solar panels, making you ineligible if youвЂ™re a renter. YouвЂ™re most likely to benefit from solar if: Much of this cost hinges on you being a good вЂњcandidateвЂќ for solar. But with any investment, itвЂ™s still smart to count the cost. To put it in perspective, a residential solar system that cost $40,000 in 2010 may cost closer to $20,000 today.ДЇor many homeowners, rising energy prices and the need to switch over to renewable energy at a global level may be enough motivation. Residential solar system prices have decreased by more than 70 percent in the last decade, the Solar Energy Industries Association says. The good news: Solar power remains cost-effective because the cost of solar for residential properties continues to drop. If you solar-power your home, is it going to pay off? The answer to this question depends on the cost of solar in your state, how much sun exposure your house gets, and which tax credits you may be eligible for.

Solar contractor expenses