How Long Does it Take to Pay Off Solar Panels?

How Long Does it Take to Pay Off Solar Panels?

Last Updated: September 1st, 2021 at 2:14 pm
Read Time: 3 Minutes

Solar energy is 100 percent free, but the panels, wiring and inverters that produce the energy cost money. Understanding that difference is to understand going solar.

Knowing that solar systems do cost money, you’re probably wondering how long it will take to pay one off, at least if you’re unable to pay in cash up front. The answer is, it’s really up to you. Our $0 up-front program is by far the most popular choice for POWERHOME SOLAR customers because it adds no up-front cost, and your monthly solar payment combined with the remnant of your electric bill will be close to or below what you’re already paying the electric company for your power.

POWERHOME SOLAR outlines the factors that will affect how quickly you can pay off your system.

1) Federal and state tax incentives. Eligible taxpayers can receive a 30 percent federal tax credit on qualified expenses from solar systems installed through 2019. The rate decreases to 26 percent thereafter through 2020, then to 22 percent through 2021. Individual states also may have their own incentives, which could further reduce the cost of your system. Consult your tax professional to determine your eligibility for solar tax credits.

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2) Paying extra each month. Let’s say that your monthly solar payment is $150, but you have an extra $50 to spend beyond that. Any extra amount that you pay trims the length of your loan and will save you money in the long run. There are no prepayment penalties, so extra payments never incur additional charges. Or you could pay what your monthly payment calls for and take your loan the distance. Whatever works best for your financial picture.

3) Size matters. Put simply, the more panels you get on your roof, the more costly your project will be. The loans are the same length no matter the cost of your system, but a smaller system could provide additional opportunity to pay more principal each month. A smaller solar system may offset less of your total power needs, though, so you need to consider that too. Again, how quickly you pay off your system comes down to you.

POWERHOME SOLAR would love to be the company you work with to install your solar system. We use American-made products and sell, finance, design, pull permits, and install solar energy systems and panels for residential and commercial applications 100 percent in-house, to best manage quality assurance and customer satisfaction, and to help local economies thrive by hiring area residents.

With our innovative solar program, homeowners can go solar for $0 up-front cost, save money on their electric bills, and generate their own clean energy. The solar panels installed on your home come with a 25-year warranty, with many panels expected to last well beyond that.

Please feel free to fill out the form below or contact POWERHOME SOLAR at 800-765-2715, and one of our solar representatives will help you determine whether your home qualifies for this program.