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How long does it take for solar panels to pay for themselves?
Brian McKay • July 20, 2021
Efficiency of solar panels continues to increase, and material cost as well as installation costs steadily decrease every year.
How long does it take for solar panels to pay for themselves?
Efficiency of solar panels continues to increase, and material cost as well as installation costs steadily decrease every year. Solar panels have now reached the point where they will pay for themselves. It is still a medium to long-term investment, but it makes sense especially if you plan on being in the same house for the next 15 years.
Most people who install solar on their home or business do so for the financial benefits. In that context, it’s important to think about solar as an investment or as a vehicle for long-term savings. With that in mind, there’s one metric–out of the many–that is best suited for comparing different solar quotes as investments: the solar payback period.
What is the Solar payback period?
"Solar panel payback period" is the amount of time it’ll take you to completely pay off your solar power system through savings on your electric bill.
It is calculated by taking the total cost to install the system, then subtracting solar incentives and/or rebates, and monthly electric bill savings until the total cost has been paid off.
For example, if you spend $16,000 on a solar panel system, then get a tax break of $4,000, the cost after incentives is $12,000. Then if the solar energy your panels make reduces your electric bill by $1,500 per year, your payback period would be eight years, assuming electricity rates don’t increase.
Solar Payback Period for Nova Scotia
Solar panels will pay for themselves in ~8 to 16 years depending on what province you’re in. Your location will determine the key metrics when trying to assess the cost of solar panels.
Nova Scotians pay among the highest retail electricity prices in the country. This automatically shortens the payback period for your solar investments.
If you live in Nova Scotia, here’s another reason to consider yourself lucky — there are now rebates available to help homeowners go solar. All Nova Scotian homeowners are able to participate in Efficiency Nova Scotia’s SolarHomes program, supported by Environment and Climate Change Canada and the Government of Nova Scotia. SolarHomes offers rebates to help homeowners install eligible solar photovoltaic (PV) systems, using professional solar contractors approved by Efficiency Nova Scotia. To be eligible for rebates, pre-approval is required from Efficiency NS prior to installing the equipment.
The rebate is $0.60 per Watt for eligible solar PV systems up to 25% of the total cost, or a maximum of $6,000. You can also combine your SolarHomes rebate with any Nova Scotia financing program that supports clean energy!
If you want to improve the energy efficiency of your home or install clean energy options including solar but don’t think you can afford the costs of installation — a Property Assessed Clean Energy (PACE) financing program could help. PACE programs are designed to help homeowners pay for their upgrades with the money they save on heating, cooling and electricity costs.
Not all PACE programs support solar, so contact your local municipality to find out more.
According to a recent report submitted by The Canadian Solar Industries Association to The Nova Scotia Department of Energy and Mines, “Solar PV reduces residential energy bills by 50 percent on average”. Given that Nova Scotia has one of the highest residential electricity rates in Canada, there is a great opportunity for Nova Scotians to “go solar”.
Thanks for reading!
Brian McKay
(aka The Solar Guy)
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When it comes to generating clean, sustainable energy, the versatility of solar panels is often underestimated. The common misconception is that solar panels only thrive in ideal, sunny conditions. However, the truth is that they exhibit remarkable resilience, enduring through sun, snow, or sleet. In this article, we'll explore the steadfast nature of solar panels in various weather conditions and highlight the substantial benefits they bring, including significant savings on monthly electricity bills and a positive environmental impact.
Winter in Nova Scotia often brings to mind visions of snow-covered landscapes and cozy evenings by the fire. While the season may be chilly, it's also an opportune time to explore the incredible benefits of harnessing solar power. Contrary to common misconceptions, solar panels don't hibernate during the winter months. In fact, they continue to generate clean, sustainable energy, offering homeowners and business owners a unique chance to turn snowflakes into savings.
For more information about a Solar Energy Solution, including Whole Home Solar PV and Solar Pool Heating solutions for your home or business, please contact AZTEK SOLAR for your free on-site evaluation and ask about the $3,000 cash-back rebate now available.
AZTEK SOLAR is a leading Nova Scotia residential and commercial solar installer, serving Halifax, Dartmouth and the surrounding areas throughout rural Nova Scotia.
With expertise in a wide variety of systems, including Solar PV (grid-tied) systems, solar hot water and solar pool heating systems, AZTEK SOLAR has helped hundreds of Atlantic Canadian homeowners, farm operations, business owners and municipalities lower their energy bills while reducing their carbon footprint.
#SolarIsNow #RenewableEnergy #AztekSolar
Harnessing the Sun : How does the Solstice Effect your Solar Production?
Debunking Myths About Solar Panel's Performance in Inclement Weather
When it comes to generating clean, sustainable energy, the versatility of solar panels is often underestimated. The common misconception is that solar panels only thrive in ideal, sunny conditions. However, the truth is that they exhibit remarkable resilience, enduring through sun, snow, or sleet. In this article, we'll explore the steadfast nature of solar panels in various weather conditions and highlight the substantial benefits they bring, including significant savings on monthly electricity bills and a positive environmental impact.