Solar container investment payback

How to calculate payback period without solar panel cost calculator?

To figure out payback period without the solar panel cost calculator, we first calculate the true cost of installing solar after incentives have been claimed. Then we compare that against the cost of electricity from the utility company, which tells us how long it takes to break even on the system. Use the formula below:

Why should you invest in a solar photovoltaic system?

For example, in areas with more hours of sunshine per year, solar photovoltaic installations will have a higher performance. Grants and subsidies: State and regional incentives can significantly reduce payback time, making it more attractive to investors.

Why should you invest in a solar system in Arizona?

A system in Arizona or Southern California will enjoy much longer peak production windows on a daily basis than one built in Michigan or Alaska. The amount of sun exposure your system receives has a huge impact on production, and higher production translates to a quicker payback period.

How much does a solar system cost?

A 2018 report by the National Renewable Energy Laboratory cites $2.65 to $3 per watt for systems built by Vivint and Sunrun. However, the equipment itself costs just $1.20 to $1.50 per watt, with the remaining charges going toward installation and overhead costs. That’s more than 100% markup on the installation fees from national solar installers.

Can you sell solar power back to the grid?

The benefit to the solar homeowner is that—with the right equipment, in the right jurisdiction—you can sell solar power back to the grid at peak daytime rates and buy it back at lower nighttime rates. This setup requires a grid-tie system with energy storage.

Is solar still financially viable in cold and cloudy climates?

The amount of sun exposure your system receives has a huge impact on production, and higher production translates to a quicker payback period. That said, solar is still financially viable in cold and cloudy climates. (This case study from a Wisconsin customer does a great job demonstrating how solar produces in a heavy snow region.)