How many years is too many before the payback period on a solar energy system is no longer worth the investment? 9? 10? 14? For many of our customers, the number generally falls somewhere in this range. Solar panels are a considerable upfront investment and, like any good financial decision, people want to see when their investment pays off. It’s sound economics, right?
Well, yes and no.
I say no because the value gained out of installing a solar energy system goes far beyond what you see on the ROI sheet. However, these are typically the only numbers most people take into consideration. This is a missed opportunity in my book.
The true financial payback from installing solar panels could be well over 200% for many homeowners; of course add on the environmental and social returns that come with it and you’re sitting on a hefty payback that does well for both the world and your wallet.
Let’s take a look at the bigger picture…
We crunch numbers and reduce margins left and right trying to get the ROI to an acceptable time-frame- which, as a business dedicated to making solar affordable for everyone, is kind of our mission. We want to give you the lowest possible price we can, and we’ll do it every single time. But sometimes we feel like the concept of “payback” has become this odd entity that looms over solar panels more than it does anywhere else.
When we go to buy a TV, are we considering what the payback is?
When we buy mulch for our yard, are we considering the payback for that?
When we buy a new car we’re obviously getting use out of it, but when’s the payback for that coming?
We derive use and pleasure out of all of these things and we never once stop and ask ourselves “When will this start making money for me?”. It’s just not a thought that comes to mind. We blindly accept that these goods and services cost money and we throw it at them with no regard other than wondering how long they will last us.
When you buy a solar energy system you get use, you get a payback, and if you sell your home the added resale value you can fetch is roughly the cost of the original system itself.
Solar panels not only add value to your property, but they also help sell your home an average of 20% faster than homes without a solar PV system.
In a post by solar website The Cost of Solar they break down exactly just how much you can expect to recoup from installing a solar energy system.
They then go on to explain how it’s possible to recoup a 200%+ return on your solar panel investment.
They nailed it- as far as financial decisions go, this one is a potential no-brainer.
In the case of SolFarm Solar Co. President and Founder, Mike Diethelm, the decision shouldn’t just rest on the financial savings. He touched on the environmental motivations and reasonings in a passionate piece he recently shared with SolFarm staff.
“There are so many more things in a solar array that bring utility and happiness to you when you go solar. It’s like brushing your teeth – you are acting responsible, getting minty clean breath to share with your neighbors, giving 40 years of sunshiny solar power — the free fuel that your solar modules use. Oh… and there is a payback! It’s not the world’s worst payback and it’s not just measured in dollars alone. We know that the carbon in the troposphere is causing the planet to warm. Should we wait for someone else to solve that problem? How many years of my carbon footprint should our future generations pay for? I’m putting my footprint down and saying none. I know you will step out of the norm and be that solution. We all do that and KABOOM… payback.”
So there you have it. While we understand that affording a solar energy system is not in the budget for every homeowner, we wanted to shed light on the different ways that you can turn solar panels into a brilliant investment. Not just for your wallet, but for our planet’s future.
As always, Solfarm Solar Co. would love to help you jump start this investment into your energy future. So contact us today for a free quote or even a simple discussion about how solar can be the right choice for you.