How Long Does It Take To Break Even On Solar Panels?

How Long Does It Take To Break Even On Solar Panels

There is no doubt that solar panels are a huge investment to make. But its advantages always supersede the expensive cost that it has. Even though it is also better if you will know how long does it take to break even on solar panels? By doing so, you will have an estimate on when you will get your return of investment.

Some Examples on How to compute it

For example, you are just on your 1st year of ownership of your solar panel system. You’ve just spent over 6,000 USD on your solar system panel. It includes all the fees such as taxes.

Over time you are getting the benefits from the solar system that you have bought. It is just like you are earning from it because of the money that you are saving with the use of it.

This is where you can get your return of investment from the everyday usage of the panel. Let us say that you are using the panel daily with just the usual consumption of residential houses. It will take about 6 to 7 years before you can say that you’ve got your investment back. 

So for 25 years imagine how big you can truly save from using solar system panels. It is projected that you might save almost 20,000 USD. It is a big saving for you because after the 6th year you’ll be able to save a significant amount of money without thinking of a capital. Another thing is the solar panel systems usually last for extended periods which is a good thing.

Is it accurate?

Although the said amount is purely estimated, you’ll still get the idea of what you can get if you’ll avail of your solar system panel. This is because getting the exact amount is hard to calculate probably because of the different factors that comprise it such as:

  • The exact hours of the usage of your daily appliance
  • The amount of sunlight available daily
  • How often you are cleaning the solar panels
  • The electricity costs in your area

So the said rough estimate a while ago can decrease or increase depending on the said factors above. 

The Installation Takes a Huge Part too!

There is no contest that solar panels need to be installed by certified professionals. This is because they have complex mechanisms that will hinder ordinary people to install it on a “DIY” manner. So this help from professionals requires money and never comes free except that you know the installer personally that is a rare case.

The good news is every year there is a decrease in the price of materials that are used in the solar panel. This is an advantage for a lot of people who are reluctant in putting up their solar panel system on their property because of the lack of budget. 

Once you already have a budget for the equipment then the next thing that you should save up for is the installation. It nearly makes over 30% of the total cost of the solar panel system.

What is break-even computation?

It is said that several factors comprise the break-even computation. In this part of the article, we will try our best to unlock it.

One important thing that you should take note is that various solar panel manufacturers do have different pricing on their products. Mostly, because of the different laws on every state, you can expect that it will also affect the pricing of the panels. Not only that, services such as installation, repairs, and maintenance.

These are the factors that we used to get that break-even calculation.

  • The climate on the area: It is important to take note of the climate in your area to know how much solar power you can accumulate daily.
  • The placing of your panels: There is surely a certain area in your property wherein it is exposed more than the other. So always do your research and observation on where is the most appropriate place to integrate those solar panels.
  • The rate of efficiency of the solar panel: This factor will determine how good the solar panels were. So it is much better if you do some surveying first before locking a contract with a particular solar panel company. Always go for the most efficient ones because it will let you get your return of investment much quickly.
  • Roof orientation: Always make sure that your roof will allow the panels to have the maximum potential of accumulating more solar energy as much as possible.
  • Time of use: Well, you must be aware that the longer the time of use, the more solar energy you’ll get. In this case, the time of use will be considered as a factor as well.
  • Checking out the cost of fees: Aside from the installation fees, the taxes and electricity costs in your state are big factors. The bigger they are the longer it would take for you to get your ROI back.


Now you have an idea of how long does it take to break even on solar panels, you can start taking actions. Two outcomes might happen, you’ll get a solar panel for your household or not. But the most important factor in your decision is weighing about the benefits that you can get from solar panels and how you can afford its costs.

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