Payback Period of Rooftop Solar PV Systems
Payback period of a rooftop PV system can simply be defined as the time taken by which the initial investment made for the system will be recovered from the savings it makes. Most PV systems come with a warranty period of 25 years. So while calculating the potential savings, we’ve to consider a span of 25 years. Solar Energy Payback Period Illustration When you consider the above definition of solar energy payback period, upon some reflection it becomes apparent that the payback periods for solar PV systems can differ widely from one region to another. Take the following steps to calculate your payback period: Determine combined costs. Subtract the value of up-front incentives and rebates from the gross cost of your solar panel system. Determine annual benefits. Sum up your annual financial benefits, including avoided electricity costs and any additional incentives. Divide your combined costs by your annual financial benefits . The result ...
