{"id":5990,"date":"2022-09-30T12:00:12","date_gmt":"2022-09-30T12:00:12","guid":{"rendered":"https:\/\/www.portal.solar.com\/learn\/how-to-calculate-the-roi-of-solar-panels\/"},"modified":"2022-11-03T20:00:43","modified_gmt":"2022-11-03T20:00:43","slug":"how-to-calculate-the-roi-of-solar-panels","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/how-to-calculate-the-roi-of-solar-panels\/","title":{"rendered":"Are Solar Panels Worth It? Calculate Your Return on Investment"},"content":{"rendered":"

Are solar panels worth it?<\/h2>\n

Over the past decade, solar panels have risen in popularity at <\/span>an increasing rate<\/a>. Odds are, if you drive through any suburb, you\u2019d see at least a few houses with solar panels on their roof. That leads many homeowners to wonder — are solar panels worth it?<\/span><\/p>\n

Aside from the environmental benefits, solar owners benefit financially, too. In previous decades, solar panels weren’t nearly as cost effective to install as they are today. Due to technological advancements, increased competition, and healthy incentives, solar owners can save hundreds of thousands in energy costs over the life of their system.<\/span><\/p>\n

Today, installing solar panels is considered a long-term investment with strong rates of return — much like buying a house. <\/span><\/p>\n

There are three main reasons why solar panels are worth it:<\/span><\/p>\n

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  1. The initial cost of installing solar panels<\/a> is dropping<\/span> continuously<\/span><\/li>\n
  2. Homeowners can avoid having to pay for grid electricity, which costs on average twice as much per kilowatt-hour as solar electricity<\/span><\/li>\n
  3. Solar panels add to your home value<\/a> and help it sell quicker<\/li>\n<\/ol>\n

    Depending on the location of the home, homeowners can save high sums of money in the long term.<\/span><\/p>\n

    For people deciding if it’s worth installing solar panels on their home, it\u2019s important to weigh out the total return on investment (ROI). This might seem obvious, but calculating the ROI of solar panels isn\u2019t always as simple as it seems. Every person\u2019s situation is slightly different, and predicting the 10-year benefit of your roof\u2019s solar panels can be quite difficult without any guidance. <\/span><\/p>\n

    In this article, we\u2019ll explain how to weigh the costs, <\/span>benefits<\/a><\/span>,<\/span> and overall ROI of installing solar panels on your home.<\/span><\/p>\n

    Weighing the costs of going solar<\/span><\/h2>\n

    Just as with any investment, it\u2019s important to calculate the initial costs when considering if solar panels are worth it. <\/span><\/p>\n

    In this case, that would include the installation costs of the solar panels on your home. However, that\u2019s not the only thing to keep in mind. It\u2019s important to realize that the actual process of installing solar panels on your roof could include a series of costs in addition to installation. Some of these (depending on your provider) could include soft costs like sales tax and permitting fees.<\/span><\/p>\n

    The next step would be to determine exactly what kind of solar system you want to purchase. These solar systems range anywhere from 5 kW (average) to 15 kW and above depending on your electricity usage and sun exposure<\/a>. <\/span><\/p>\n