BENEFITS OF HOME SOLAR PANEL INSTALLATION
There are many ways to slice and dice the economic benefits of solar. One way to assess the value of solar is calculating the payback period (how long it takes for a system to pay for itself) by taking the overall system price and dividing it by the average projected solar savings each year. For example, if your total solar panel installation cost is $28,000 and you’re projected to save about $2,000 a year, then your payback period would be 14 years (an average payback period here in Colorado).
Another way to look at the return on your solar panel installation cost is to calculate your annual rate of return. If you have a 14-year payback period, you are getting 1/14 of your investment back each year or a 7% annual return. That’s an excellent for a return on a low-risk investment! Any solar savings after those 14 years go straight into your pocket. No capital gain taxes, no delay, and low risk.