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A Guide to Solar Panel ROI

Solar Panel Cost:

Savings, Costs, & ROI of A Solar Installation

At Simply Solar, we’re proud to be the San Francisco Bay Area’s leading solar provider, with more than 20 years of experience and a spotless track record under our belt. Our mission is to help make our community energy independent through effective, reliable solar panel installations for both homes and businesses. But for our customers, going solar isn’t simply about renewable energy: it’s a financial decision. If you’re considering installing solar panels on your home or business, it’s important to understand the ROI of solar.

The Economics of Solar Energy

ROI comes in two ways:

  1. Paying less money per month for your energy usage
  2. Selling excess energy production back to the grid
The beauty of solar power is that you own the means of power production, which creates the conditions for serious savings in the long-term. Whether for your home or business, installing solar panels not only makes you energy-independent but also creates a serious return on investment over time.

Generating Your Own Power

Working with a reputable solar installer like Simply Solar…

“Allows most homes and businesses to generate 80-100% of their energy needs through a solar power system, and many of our customers are able to produce more energy than they consume during different times of the year.”

Right off the bat, any energy you’re producing through your solar system is the energy you don’t need to buy from a power company, which already equates to savings.

Net Energy Metering (NEM)

California is a state that uses automatic “Net Energy Metering.” This is an automated program that allows your solar power system to sell excess energy back to the grid at market rates in real-time.

Then, you can use the credits generated from this sale to purchase power from the grid during the non-production time (at night). The beauty of this is that because you produce and sell power during the peak hours of daytime and purchase power at night, you’ll be selling energy at peak market rates but only buying it at non-peak rates: in other words, you very literally will “buy low, sell high.”

Net Energy Metering (NEM) – the ability to sell excess generated power back to your utility at market rate.

Incentives and Rebates

There are several incentives and rebates available for solar installations across the United States.

The largest incentive is currently the Federal Investment Tax Credit, which allows for a 30% tax credit on any solar installation, with no size restriction. Note, that this is a tax credit, and not a tax deduction, and thus comes directly off your tax liability for the year

Tax Credit Example

Solar System Cost = $25,000
Tax Credit = 25,000 x 30% = $7,500
Total Tax Savings = $7,500

What Can I Save by Switching to Solar Power?

What Can I Save by Switching to Solar Power?

What does this look like in terms of the bottom line?

Every system is different, so the only way to fully understand your savings is to schedule a free solar consultation. Over the lifetime of a solar power system, savings – and ROI – are significant.

Payback Period

 
It takes most customers around 4 to 6 years to pay off the cost of their solar installation. Even before that point, homeowners who switch to solar pay less per month towards their installation cost than they did for a regular power bill, but after the payback period, your solar system will generate pure profit. Our customers often save thousands of dollars per year from their solar system, and savings for a typical customer can exceed $90,000 over the 25-year lifespan of the solar system!

Net Energy Metering (NEM) – the ability to sell excess generated power back to your utility at market rate.

Get a Solar Panel Estimate!

Schedule a Solar Power Consultation in the Bay Area

​Switching to solar is a great way to reduce your impact on the environment and create a more sustainable, independent lifestyle, but thanks to the savings generated by a solar system, it makes economic sense. Let us show you how making the switch to solar power can help you shave thousands of dollars on your energy costs year after year: book a free solar consultation today!

Questions? Call Us (707) 285-7037

We are Here to Help You! 24/7

We take pride in the products we sell. Representing one of the leading solar companies in Sonoma County, our passionate team of installers and solar consultants give you a professional and simple process from start to finish, for any size solar project.

Contact Us

(707) 285-7037

contact@simplysolarcalifornia.com

1740 Corporate Cir,

Petaluma, CA 94954