We know that the break-even point in the purchase and installation of your solar system is at the forefront of your mind. Exactly how long will it take you to pay off your solar purchase? There are a few different ways to view your payoff date.
For systems purchased with a loan, there is an array of variables that make it hard to give a generalized answer or timeline. The exciting fact is, there are ways to accomplish your payoff sooner than you think. When you take out a loan for your car or your home, you understand that your payoff is at the end of the loan term. You can accelerate payments or prepay your loan early to have an earlier payoff date.
The same is true with a solar solution purchased with a loan. Like a car loan or house mortgage, your loan will have predetermined terms associated with it. However, unlike a vehicle or home, your solar project will be making you money! When you consider your savings, the payback of the energy that your solar panels are generating, tax credits, the decrease in your monthly electric bill, and your ability to pay down your loan early, it is very possible that your break even point can come between 8 to 10 years. All during this time, you also receive the benefit of producing your own clean, solar energy.
For those leasing your solar solution, a power purchase agreement between you and your solar provider will last around 20-25 years. And for those with cash or a home equity line of credit, each monthly savings is just cash right back in your pocket—making your break-even point come even more quickly.
Add in an enormous federal tax credit, plus state and local incentives, and you have one exceptionally nice deal on your hands. To calculate your personal payoff date, contact your solar sales and tax consultants for more information.