Are you planning to install a solar energy system for your home, but worried about the upfront cost? Do you know solar panels pay for themselves over time and even generate a return on investment (ROI)? Installing solar panels for your home can also increase the value of your home.
What Is Solar Panel ROI?
Return on investment (ROI) calculates the profit you make on an investment. The ROI for solar panels for a home is the amount of money you get from the savings on your energy bills and the value added to your home once you have repaid the installation costs.
Solar panels may perhaps have a high ROI, regardless of the geography where you can meet most or all of your electricity needs and get rid of your energy bills. Increasing utility costs and decreasing equipment costs are making it much cheaper than ever before to reap the financial and environmental benefits of solar energy.
How to Calculate ROI
The return on investment on your solar panel system will mostly rely on the cost of solar panel installation and how much you can save on your electricity bills. To calculate ROI, you need to consider:
- Solar panel installation cost, which includes equipment and labor
- Home size
- Preparation costs, including insulation
- Warranties
- Insurance
- Borrowing costs
- Government incentive schemes
- Estimated solar energy output
- Electricity charges
- Average electricity use
This will give you an idea of the upfront cost and the duration it will take to get back your initial investment. This is known as the payback period. A solar panel ROI calculator can help you find the payback period. This will help you determine when your investment will start making a profit.
The Role of Government Subsidies
With the greenhouse warming and increasing need for alternative energy ,there are State and Central Government subsidies available to encourage the uptake of solar energy . Both State and Central Governments of India at all levels have committed to subsidizing renewable energy to meet their environmental goals. Individual states offer various subsidies, including property tax credits, sales tax exemptions, renewable energy credits, etc. State Energy Development Agencies are also providing additional subsidies, this will help you in further reducing your overall investment.
Maintain Your Solar Panels
After you have installed your solar energy system, you can maximize your ROI by ensuring the equipment is maintained properly. Keeping your solar panels clean will ensure they produce the most electricity throughout their lifespan. You can have them cleaned professionally at least once a year. Periodic inspections will identify any impaired components that need to be replaced to stop strain on the system. The longer your solar panels work at the highest efficiency, the higher ROI they will make.
Solar Energy is a Wise Investment
Installing solar panels at your home is an investment that can assist you to save more and contribute to a cleaner environment.
There are different ways you can gain the most out of your solar panel installation to reduce the upfront cost and increase your ROI. The amount you pay for the system, and the duration of time it runs, have an impact on the money you can generate,the cost of solar panels, inverters, and other parts largely depends on the quality and longevity
With more than 14 years of experience, Intelizon provides an exceptional service that will fetch you the best ROI. We make it our objective to make sure your transition to solar is convenient from start to finish. We ensure to provide end to end after sales service & also we 1st analysed & understand consumer requirements so that you can get the most efficient system possible. You can contact us for a free quotation.