How long does it take to pay off solar panels?

The average solar panel payback period is between 7 and 12 years. Exactly how long it takes to pay off the cost depends on factors like location, panel type, and climate.

How long does a solar PV system last?

Read our Solar Panel VAT Now 0% article for more information. Solar PV payback time will ultimately depend on your own system’s set-up, but considering a solar PV system’s life expectancy is 25+ years, then when it is paid off you will be able to benefit from free-green energy.

How long is the solar panel payback period?

The solar panel payback period is typically determined by comparing the cost of the solar panel installation to the expected electricity savings. For example, if you pay $14,000 for your installation and save $2,000 per year on electricity, your payback period is 7 years. Solar panel return on investment (ROI) is a different measure of financial success.

What happens after solar panels are paid off?

After the solar panel payback period, your electricity bills will be either fully eliminated or greatly reduced. For the rest of your system’s lifetime, you’ll save money by minimizing electricity costs. Once your panels are paid off, you’ll be able to reap the full benefits of switching to solar.

How long does it take to recoup solar panels?

If we proceed to calculate the solar panel payback time based on these figures, we come to the conclusion it would take 9 years to recoup the costs. Now, let’s consider a system size of 5.2 kWp with battery included, also in Glasgow:

How long do solar panels last?

But there are significant differences between traditional options (such as savings and investments) and buying and installing a solar panel system. If you already receive feed-in tariff payments, they are guaranteed for between 20 and 25 years (depending on when you had the panels installed).