A solar system has a wide range of benefits, including reduced electricity consumption, lower reliance on the utility grid, and less consumption of fossil fuels, all of which are great for the environment and reduce your carbon footprint. However, most people want to make the switch because it helps them save money. Therefore, it’s likely not surprising that one of the most common questions we receive is “How long until my solar system pays for itself?” Let’s take a look at a detailed answer to this question.
Ways Solar Saves You Money
Solar power does require a substantial initial investment to install a system and get started. However, right from day one of your system working, your solar photovoltaic cell system starts generating clean electricity that your home uses. When your home uses this electricity, it is not using energy from the power grid, meaning you pay less on your utility bill. The larger your system, the more electricity it generates, and the more money you save per month on your electric bill. If you generate more electricity per month than your home uses from the grid, you could finish with a negative utility bill!
These savings are what help you pay off your solar system. The exact amount of time your system will take varies and will be unique from system to system. Some factors that may play a role in your exact payoff time include:
- The size of your system and the amount of electricity it generates
- The price of traditional grid electricity in your region (cheaper electricity means less savings per kilowatt/hour
- The total cost of your system, including all incentives, rebates, and tax credits
- How you choose to finance your installation
New Jersey Average
In the state of New Jersey, all of the upfront costs of a solar system can be recuperated in as little as seven years. Your pay period may differ, but this is actually considerably lower than some of the other states in the country, such as California where the average payoff period is closer to nine years.
In most cases, the financial returns of a solar system exceed the standard 9.9% rate of the S&P 500 Index, with much lower risk! And the best part about solar systems is that once you have paid them off entirely and recouped the initial costs, you can enjoy clean electricity and lower utility bills for decades (most solar systems come with a 25-year warranty, though many last 40 years or more).
If you are considering making the switch to solar, you should speak with the New Jersey solar panel installation representatives at Sea Bright Solar. Since 2003, our friendly team has helped hundreds of customers lower their utility bills and reduce their carbon footprint by creating customized and efficient solar panel systems for their homes. We are fully dedicated to your complete satisfaction, and provide award-winning service and friendly financing and purchasing options to help you get the system you want at a price you can afford.Get a free analysis of your home and find if you qualify for solar energy today by calling Sea Bright Solar at (732) 253-4052.