Energy storage payback calculation table

How do you calculate the payback period of a solar system?

The simplest way to model the payback period is to divide the project’s costs by its expected annual production number. That’s a good start, but it doesn’t tell the whole story. Let’s get down to brass tacks: Exactly how long will it take your solar system to pay for itself?

What is the average solar payback period for EnergySage customers?

The average solar payback period for EnergySage customers is under eight years. Here's what you need to know about how long it's likely to take you to break even on your solar energy investment. Your solar payback period is the time it takes to break even on your initial solar investment.

How do I calculate my annual energy savings?

To calculate your annual savings, you'll need to know how much you'll save each year on electricity costs. Let's assume your monthly electric bill is about $175. Eliminating that cost by going solar amounts to about $2,100 in annual energy savings, assuming your system's energy production covers 100% of your electricity needs.

How do you calculate a payback period?

The simplest way to model the payback period is to divide the project’s costs by the expected annual production number offered by the calculator. That’s a good start, but it probably won’t tell us the whole story. Your actual payback period will need to consider tax credits, net metering, and state incentives.

How do I know if a solar contractor has a payback period?

There’s a decent chance your contractor will have a spreadsheet-style document with all the details you need to understand your payback period. That document will typically pull information from multiple resources and tools generally available to solar contractors. For instance, when we worked the angles on our roof, we used a tool called PVWatts.