Is installing solar panels worth it?
Typical residential solar pays back in 7-10 years and generates ~$30K of net savings over 25 years. Sensitive to local sun, electricity rate, and incentives — we run yours.
How the math works
payback = (system cost − federal tax credit − state incentives) ÷ annual electricity savings
Annual savings = system kWh production × your electricity rate, minus net-metering exports/imports if applicable. Production depends on system size + local sun-hours (NREL data: 4.0-6.5 peak hours/day across the US).
The 25-year picture: typical residential 8-10 kW system costs $20-30K before incentives, $14-21K after federal 30% ITC. Generates ~$1,500-2,500/year of savings depending on local sun + rate. Net 25-year savings: $30K-$50K. CO2 avoided: ~150 tonnes lifetime.
What kills payback: shaded roof (cuts production 20-40%), low electricity rates ($0.10/kWh vs $0.30), unfavorable net-metering policy, or high financing rates if loan-financed instead of cash-paid.
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Real-world scenarios
- $22K solar system → $34K of net 25-year savings (and the conditions where it doesn't work) — payback math + the four conditions that make solar uneconomic.