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There are a lot of considerations to make when purchasing solar panels. Cost is the major concern, and following closely behind that is the solar panel payback period. Before marking a date on your calendar, pay close attention to these solar panel payment details.
It doesn’t take much to convince a homeowner to Convert Home to Solar Power. It is the best option for businesses and consumers that want clean energy. The cost has fallen since it was first introduced, so getting solar panels is no longer considered a luxury upgrade. It has as much credit for being a utility as traditional methods like gas or electricity. But there is still no doubt about solar panels being an investment in modern tech. For most, the question isn’t just about the investment, but the value it brings as an entire package. Since solar energy is more popular than ever, you can expect some great discounts in several areas.
A lot of people don’t realize that you can pay in full for solar panels without getting a loan. Sometimes individuals will wait until tax time and then use their refund to pay off solar panels in full. An upfront payment is the best way to maximize the savings you receive from solar energy. But it is understandable that putting that much money upfront is not a reality for a lot of people. For homeowners, using a loan is the most popular option.
For businesses, an upfront payment has several advantages. When creating your business plan, solar panels can be added to the utility costs. At the end of the year when an accountant is doing businesses taxes, the solar investment tax credit will make more sense. The sooner you’re able to add this to a business, the more you can expect to see the value of an upfront payment.
For homeowners, a loan is the most acceptable payment method for solar panels. Getting it paid off in full will come down to several factors, with some of them being out of the control of most customers. Here are the most common pay off schedules, including things that may affect the timeline.
Six years is the most common payback period for solar panels. It also offers the most balanced savings when rising utility costs become a factor.
Ten years is on the longer end, but may be offered for a larger system size. A big home is not going to have the same sized system as a smaller dwelling. The total cost of your system (along with the efficiency of the panels) will contribute to the overall savings value.
Keep in mind that while these averages seem long, the actual life of a solar panel is more than 25 years. After the payback period, all of the energy produced is considered ‘free’.
A solar panel is a lifechanging product that every home and business should have. You don’t need to get to the end of the payback period to appreciate the results it has on your lifestyle. Install with confidence, and the savings will come in a short period of time.