Before installing solar panels on your home or business, it’s helpful to understand how long and what it takes to recoup your investment. This can help determine whether the upfront costs and installation are worthwhile. In this post, discover how long solar panels take to pay for themselves in Florida and some factors contributing to this payback period.
How Long Do Solar Panels Take To Pay for Themselves?
While the national average solar payback period is 7-10 years, Florida residents and businesses enjoy a much shorter period thanks to the over 300 sunny days the state receives annually. Considering that high-quality solar panels last 25 years and some last up to 35 years, you can enjoy 15 to 30 years of energy savings after recouping your solar investment.
Below is a simple formula that you can use to determine the payback period:
- Determine the system cost, excluding financial incentives
- Calculate your annual electric savings
- Divide the system cost by your annual savings to know your payback period
Factors That Impact Solar Payback Period in Florida
Your solar panel provider can help you evaluate the following factors to ensure you get the least time possible.
Price You Paid for the System
The cost of installing solar panels varies according to your target energy output and target household energy use. A larger system increases the cost and vice versa. The total system cost also varies with the additional equipment you may need, such as solar batteries, racking systems and EV chargers.
Financing Options
Paying for your solar panels in cash needs a considerable initial investment but has the best ROI. On the other hand, solar loans allow a lower initial investment but usually increase the total cost due to the interest you pay over time. This increases the payback period compared to cash payment.
Florida Solar Incentives
Florida offers various solar incentives to help bring down solar installation costs and cut down on the payback period.
- Federal Tax Credit: The federal tax credit allows qualified taxpayers to claim 30% of their solar system costs as a deduction in their income taxes.
- Net Metering: Under this program, you can send excess power generated through solar panels to the grid and your utility company credits the price to your utility bill, giving you increased annual electric savings.
- Local Incentives: Depending on where you live in Florida, you may also be eligible for local incentives like the Boynton Beach Energy Edge Rebate Program.
Lower Your Solar Payback Period With Solar Optimum
Knowing how long it takes to recoup your solar investment can help you determine if it’s worth it. Luckily, homeowners and business owners in Florida can enjoy several incentives that help lower their solar installation costs and payback periods in the long run.
With the help of a Solar Optimum expert, you can easily determine the best solar system to help you get the most reasonable payback period. We can help you evaluate Florida solar incentives to lower your payback period. Contact us today or download our Ultimate Guide to Going Solar to learn more about the benefits of going solar.
