Today’s costs for an average home solar system, could still take more than six years to recoup.
According to the Energy Efficiency and Renewable Energy division of the U.S. Department of Energy, $30,000, or even $5,400, after all rebates, which may seem like a high cost to you, is still less than 1% of what it did cost in the 1970s.
According to Broadpoint.AmTech, a technology research firm, today’s costs for an average home solar system, could still take more than six years to recoup.
Assuming an average cost of $28,000 to equip a home with home solar energy and an estimated tax rebate of $10,000. And also assume you’re paying 17 cents per kilowatt hour for conventional electricity, which you’ll still need to pay for from time to time and add in approximately six full hours of sunshine a day (this may vary depending on your location), it would take about six and a half years for your investment to pay off. If you change the price of electricity to 11 cents per kilowatt hour, it’ll take almost 10 years based on Broadpoint’s equation.
However, If you can afford to and have that kind of cash on hand, using home solar panels could actually make potential future electricity price increases less of a concern.
Consider this though, if your at all handy around the home, buying a $49.95 How to Make soilar Panels Kit which shows you precisely with easy to follow videos and complete instructions on how to build a system for yourself and all for under $200.00! It even shows you where to find the materials. This option would elimate most of the six year wait for the return on your investment and you could start saving money in the same year!
Note that savings can vary
The location of your home energy system has a lot to do with how much you actually save in electricity, and how energy efficient your home is and what other features you have improving your home’s energy efficiency.
The more energy efficient building you have, the better your renewable energy system will work, so before you install your system, adding insulation, energy efficient lighting, appliances and windows will go far to reduce your home’s electricity use
Net Measuring a Local Benefit
Some utility companies use net metering, a measurement system, which may add to your savings.
As an example, in Hawaii and New York, where retail electric rates are high, this is very beneficial, and utility companies also benefit as the solar energy you’d provide would likely come during periods of peak demand for electricity, during the day.
I Hope this has been helpful, and good luck on your decision!