Solar Panel

How cost effective are solar panels long term? Installation and maintenance compared to Power savings?   

  • The payback period is in the range of 4-8 years, but they offer a service life of over 20 years. If you have access to low-interest loans, you can purchase a solar PV system with loaned money and then pay with cash saved on energy bills (net expense for you becomes zero). Installation tends to be the highest expense, maintenance is very simple because they don't have moving parts (unless you equip a solar tracker). Just plan for an inverter replacement in around 10 years.
  • Registered Users Member
    Supplier Supplier

    In reply to Leonardo David:

    "The payback period is in the range of 4-8 years"

    I would be careful with that Statement- it depends on lots of factors to find that aggressive of a payback.  The last time I looked for my particular residence payback was still 12-15 years.  

    Factors- Cost of Utility Power, Local Incentives, Federal Incentives, Cost of Labor in your area.


    Tom Forshee

    Key Account Manager

    Philips Lighting North America

  • In reply to Tom Forshee:

    Thanks for the clarification, it can be misleading as I wrote it.

    I forgot to mention that I've seen that kind of payback in larger commercial facilities where they can take advantage of economies of scale, where the kWh cost is around 16 cents/kWh.
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