Finally got around to calculating a payback period for my solar install. My total net cost was $13,800 for an 11.2kW system.
Assumptions:
- 2.5% price per kWh rate increase annually
- 1% system degradation annually
- discounted future generation to present value at 3% (since this was effectively financed via our mortgage... absent solar, we would have put more money down on the house)
Payback period of about 7-8 years, which is what I expected. Perhaps sooner depending on future rate hikes, which are likely to run north of 2.5% per year. This does not factor in home price appreciation, which is another benefit.
Assumptions:
- 2.5% price per kWh rate increase annually
- 1% system degradation annually
- discounted future generation to present value at 3% (since this was effectively financed via our mortgage... absent solar, we would have put more money down on the house)
Payback period of about 7-8 years, which is what I expected. Perhaps sooner depending on future rate hikes, which are likely to run north of 2.5% per year. This does not factor in home price appreciation, which is another benefit.