Usually, the first question a homeowner has when deciding to invest in solar is “When will I see a return?” With the increased popularity of solar, there is a great deal of data out there to show the return on investment (ROI) of installing in a solar system. Colorado solar panels are investments with strong rates of return. Homeowners can generate electricity through their solar panels and avoid ever-increasing utility rates by eliminating their electricity bills. Having solar panels on your home also increases the value of your property.
When can I see an ROI on my Colorado solar panels?
In the U.S., the typical ROI period is about 8 years. For example, if the cost of installing solar on your home is $16,000 and your system is going to save you $2,000 per year on energy bills, your break-even point will be 8 years. The break-even point can be different for every homeowner because of several factors.
When you are deciding on a company to install your solar panels, you should compare the payback period for multiple quotes. That way, you can identify when your solar investment will begin earning you money.
Here are a few circumstances that determine how long it will take to see a return on your solar investment:
- The Upfront Cost – The cost of solar panels depends on the size and type of panels. Sandbox Solar provides free estimates for all of our clients. We will help you determine the cost of your system based on the type of panels you need and the size of your home. The good news is that the cost of solar continues to decrease with its popularity. Sandbox Solar also provides customized systems and financing options, which can help reduce your overall cost.
- Monthly Electrical Use and Generation – The size of the solar system you need will depend on the monthly amount of electricity you consume. Once you know how much you consume, you can figure out how much of that you can offset each month with solar. The higher your electricity bills are, the shorter your estimated ROI period will be, because you can reduce or eliminate this bill as soon as your panels are up and running. It’s also important to keep in mind that the size of your roof and where you live can determine how much electricity your solar panels will produce. Sandbox Solar will help you determine the right solar system for your roof size, location, and energy consumption.
- Financial Incentives – At Sandbox Solar, we will find the rebates you may qualify for and the best financing options for your situation. Colorado solar panels can be more affordable if you utilize tax breaks and rebates to dramatically reduce the cost. For instance, the federal solar investment tax credit (ITC) allows you to deduct 26% of the cost of your system from your taxes. And Colorado has some of the best solar rebates and incentives in the country. We have been installing solar panels in Colorado for years, so we can help you understand the rebates and incentives you qualify for.
If you want to learn more about solar and get a free quote for your project, contact us today! Investing in Colorado solar panels can be your first step toward achieving your energy goals. It’s a great investment opportunity to offset energy costs, reduce the environmental impact of your home, and contribute to a sustainable future.