How To Determine Your Solar Panel Payback Period?

Ever since the start of the industrial revolution, the annual global temperature has increased, resulting in global warming and climate change. Burning coal, petroleum, and gas release a lot of carbon dioxide into the air. So, we need to be careful about these resources’ consumption to minimize carbon dioxide emissions. 

Installing commercial solar Adelaide is a way for the future and has become progressively popular in the commercial industry. Solar power systems derive clean, pure energy from the sun and help combat greenhouse gas emissions. 

Factors Impacting Solar Payback Period

There are many factors to consider when calculating the payback period of a solar panel. We’ll review a few major factors here.

How Do You Determine Its Payback Period?

The financial benefits of using solar panels are now well documented. It functions as a long-term investment with strong rates of return. The solar panel payback is a calculation that estimates how long it will take for you to “break even” on your solar investment. The calculation is concerned with the period in which the revenue will equal total costs, and its net income will be zero. 

The payback period can be determined by starting with the total cost of installing the panels, minus incentives or rebates. Then by dividing the remaining cost by the monthly electric bill savings. For instance, suppose the solar panel installation costs $17,000. You can expect a rebate of $5,000 from concerned authorities bringing the cost down to $12,000. Thus, with an investment of $12,000, you can expect $1,200 savings per year, bringing your payback period to 10 years. 

Bottom Line

Solar Energy is a clean, pollution-free, and renewable source of energy. Fossil fuels will eventually run out, but sunlight is there forever. Whether you are trying to reduce electricity costs or carbon emissions, solar panels can be used to generate major savings and help in pollution control. So get in touch with Class A Energy and use solar solutions for good.

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