How do solar energy costs affect your return on investment?

Specific energy costs in your area also directly impact your return on investment (ROI) from your solar power system. The higher your monthly electricity bill, the more quickly you tend to recoup your investment because it shortens your payback period.

How does electricity affect solar payback?

The amount of electricity your household uses monthly, as well as the cost of electricity in your area significantly influences your solar payback period. The higher your electric bill, the greater the savings and the faster you’ll reach your payback period.

Should I take out a solar loan or a PPA?

On the other hand, taking out a solar loan reduces initial costs, but the interest you pay raises the total amount you pay. Both options are eligible for solar incentives that cut down your installation costs. Another financing option is a solar PPA, an option to lease your solar system from the installer.

Is solar a good option if you have high electricity bills?

As you can see, solar is even more appealing in states with high electricity costs. Eliminating high electric bills leads to quite a speedy payback period of 3.64 years if you take on a DIY install, or 5.63 years if you hire a contractor. Scenario #4: Low electricity rates, more expensive system