How Long Is The Typical Solar Payback Period In Orlando?
When homeowners decide to install solar, the question that we often get is “How long is the payback period?” This is a valid question as solar installations can be a large investment depending on the size of the solar array.
Today, our team at Solar Bear Orlando shares some insight into this question to help you make the best decision for your Orlando home.
What is the Solar Payback Period?
First, let’s discuss what the solar payback period actually is. Essentially, it is the amount of time that it takes for your solar installation to pay for itself through savings on your monthly energy bills and possible net metering.
Factors That Impact the Solar Payback Period
Our abundant sunshine in Florida allows solar installs to have a much faster return on investment (ROI) than many other states. That said, the solar payback period is largely impacted by the following:
- The amount of electricity your home uses
- How many solar panels in your array
- The total cost of the system
- If you qualify for any solar incentives
- If you use solar batteries or net metering
Most of our customers qualify for some kind of solar incentive, which can have a big impact on the cost of the solar array. By far the biggest factor to consider when trying to calculate the solar payback period is how much you pay for the solar system overall and how much your costs are offset by the installation.
Typical Solar Payback Period in Orlando
On average, the typical solar payback period in Orlando is around 7-8 years, depending on the system size and incentives taken advantage of.
For example, if you install a 5-kilowatt solar system, you could be looking at a cost between $11,000 and $14,000. With the government’s solar tax credit, you could save 30% on the installation cost alone. And that doesn’t include any other solar incentives that you may be entitled to!
Net Metering
Net metering allows customers to connect solar panel systems to the electrical grid and receive credit or payment for the excess energy that they produce. This is often applied to their next month’s bill, which can offset costs tremendously.
Solar Batteries
Solar batteries can help shorten the overall solar payback period by storing excess energy that is generated to use during peak electricity periods like the evenings. This allows homeowners to avoid paying extra costs for grid-tied power, which can lead to a much faster return on investment.
Related Reading > Florida’s Average kWh Per Day: How Your Home Compares
Ready to Go Solar?
As you can see, the solar payback period in Orlando is influenced by many factors including the size of your solar array, the amount of electricity your home uses, qualification for solar incentives, and if you take part in net metering or use solar batteries.
If you’re ready to install solar and are unsure of what your solar payback period may be, reach out to our team at Solar Bear Orlando and we will generate a comprehensive quote that will help you make the best decision for your Orlando home. Get started today by calling (727) 471-7442!