How to calculate ROI on your solar panel system
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Usually, you only hear the term ROI—or return on investment—in business terms. It’s a pretty typical measurement that measures whether or not a particular investment is worth its cost. In other words, ROI measures if something is profitable.
You can easily calculate the ROI of your solar panel system. Here’s the formula we use when we do a solar analysis:
Average Monthly Solar Savings / Net Investment (cost after tax credits, grants and SRECs)
In other words, we figure out how much you save on your electricity bill each year, and compare that to what you actually have to spend to install a system. Compare that with any other investment you might make. When the stock market is good, we’re usually happy to be earning more than 10 or 20 percent return. When the stock market is bad, we hope we’re not losing money, and that we can get a modest 3 – 5 percent return.
An average solar panel system, though, provides an average return of twenty-eight percent! And that’s only after 3 – 5 years!
Here is a great return on investment comparison from SunPower:
* Solar ROI based on 3kW system in San Jose, CA with a $265 monthly electricity bill
** Traditional investment returns based on average nominal returns between November 1983 and November 2008
The World Is Changing, and We Need to Change with It.
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There’s no shortage of bad news these days. Natural disasters, wars, violence. The list goes on and on. It might seem like there aren’t many bright spots in the world around us.
Even though our region just experienced one of the coldest winters on records, we know that climate change is real. In fact, some climatologists believe that climate change is causing more extreme weather conditions on both ends of the spectrum—colder winters and warmer summers.
We know that our world is changing. We know that we need to change our lifestyles, to live cleaner, healthier lives, and to leave a smaller carbon footprint. And that’s a bright point you don’t hear often enough in the media. We can do something. Every single one of us. Every single day.
It’s with this idea—that we can change the world for the better by altering our lifestyles—that we officially launch the Solar Energy World blog.
We at Solar Energy World believe there is a sustainable future for us. And we intend to use this blog as a platform to explore that future. Sure, we’ll be talking about the ins and outs of solar energy. After all, that’s what we do here.
But more importantly, we’ll also be talking about the actions—both big and small—that each of us can take every day to ensure that the bright point in our future gets brighter every day.
Welcome to our blog. Welcome to Solar Energy World.
Welcome to our Solar Energy Blog
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Thanks for stopping by! Check back soon for information and resources in the solar community!