Is Solar a Sound Investment?
When you put solar panels on your roof, you’re making an investment with a very predictable Return on Investment or ROI.
Why so predictable?
Because your panels will produce about the same amount of electricity over the course of the year.
And year to year it’s not really going to change much.
Here's how it works...
Multiply the size of your system x 1,350 kWh x price your utility charges you for electricity.
Because in Florida, according to Solarreviews.com, 1 kw of solar will produce roughly 1,350 kWh every year.
So let's say you have a 10 kw system and your utility charges 12 cents per kWh.
Simply multiply (10 x 1,350 x $.12 = $1,620).
This means your solar array will produce roughly $1,620 worth of electricity annually.
Now let's say that after the 26% federal tax credit and all other rebates, your total out of pocket cost for your solar system was roughly $16,200.
In order to figure out your annual ROI,
Divide the amount of production by the total investment.
$1,620/$16,200 = .10
A 10% ROI!
So there you have it. If a 10% ROI, on a very low risk investment, is good for you, solar is a way to do that.
By the way, if you’re not sure how much you pay for electricity, you can find that number here.
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