4 ms·
I've gone through a similar process. The gist of it is that it takes about 6-7 years to recoup the investment, disregarding compound return and opportunity cos
by ww520 6y ago
I've gone through a similar process. The gist of it is that it takes about 6-7 years to recoup the investment, disregarding compound return and opportunity cost. You can think of it as buying a bond that pays back in 6-7 years and then getting 23-24 more years of free return (discounting the teardown cost eventually).
Here's a more detail approach.
1. Compute your electricity usage. Look at 12 months of electric bill. E.g 800kWh per month (9600kWh per year).
2. Get quotes from the solar vendors. They usually quote in term of 5kW system, 6kW system, or 10kW system. The kW number is the instantaneous electricity the panels generated. Multiply that by hours to get the kWh number. The number of panels doesn't matter because some panels generate more some less. You want the total system output number in kW.
3. Figure out how many hours of useful sunlight a day your house can have. Google Sunroof and other calculators on the web would do it for you. E.g. 5 hours of useful sunlight per day.
4. E.g. with a 6kW system, 6kW x 5 hours/day = 30kWh per day = 900kWh per month = 10800kWh per year. Remember you need 9600kWh/year from 1? This just about covers it, accounting for some loss of efficiency.
5. A 6kW system costs about $14,460–$19,260 in CA. See [1]. Let's say it costs $18,000. Let's say your electric bill is $250/month or $3000/year. $18,000/$3,000 = 6 years to recoup (very simplistic view).
Battery is an additional cost, $6000~$10000.
[1] https://news.energysage.com/6kw-solar-system-compare-prices-installers/ https://news.energysage.com/6kw-solar-system-compare-prices-...
- jay_kyburz 6y agoBuy simply comparing your bill with how much you generate is not very useful. You have to know when you used that power, and whether or not the sun was shining at that time of the day. You need to know if your local utility will even pay you for the power you generate that you don't use. If you are out of the house for most of the day, you probably don't use much power then. When you get home at night you turn all your devices on and start cooking and cleaning.
- ww520 6y agoNet metering or battery can timeshift the energy usage.
- bluepoint 6y agoIt used to take 6-7 years to recoup... 10 years ago when I was doing the math. I am surprised to hear that it is still the same even though the prices are supposedly going down.
- ww520 6y agoI think some incentives have gone away and that keeps the price high.
- MayeulC 6y ago> The gist of it is that it takes about 6-7 years to recoup the investment Now I wonder how to compute the best time for investing if you consider both the diminishing rate of panel prices, and the electricity you'll need to pay while you don't have those. Is it always worth it to invest ASAP, or is there a panel improvement rate at which it is worth waiting a bit?