Based on estimates from sources like SolarReviews and Palmetto, it can up to a decade to have a solar panel setup completely pay for itself. The equation comes down to a few key factors, the first of which is the amount of money spent on the initial investment. Per Consumer Affairs, the average price of a 6-kW solar panel setup in the United States is $17,852. A significant chunk of that upfront cost does pay itself off within the first year by way of a federal income tax credit for using solar energy, which totals to a little less than one-third of the system’s price.
Unfortunately, the process slows down after that initial solar tax credit is sorted for the year of installation. The remaining two-thirds of the upfront price of the system mostly pays itself off through money saved on a user’s energy bill. A report from Gitnux indicates that solar panels allow the average household to save $85 monthly. That means each year, the average American will save $1,020, or roughly one-tenth of the system’s installation costs.
Of course, these statistics are estimates, and plenty of variation can occur based on situational factors. For instance, some states have a relatively shorter or lengthier solar payback period due to local variables like the cost of electricity. How many solar panels you need to power your home is also a crucial part of the equation.
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