How to Calculate Return on Investment From Solar Power
Most people understand the vague notion that installing a solar power system in their home will save them money. However, it’s always better to have a real idea of how much value you will receive in regards to your individual circumstances.
Discussing with your solar energy consultant will give you an accurate idea of your return on investment (ROI), but if you’re looking to get a ballpark figure yourself, consider following these steps.
1. Find the Average of Your Current Energy Usage
To work out your average energy usage, you should consider your energy usage over 12 months. If you can’t access your bills online, ask for a usage history from your current energy supplier. Remember that if you are moving into a newly built home your energy usage may drop due to the house being more energy efficient and containing energy-saving appliances.
2. Find Out the Exact Cost of a Complete Solar Energy System
Make sure your solar energy consultant is able to give you an accurate quote for your panels, installation and any other costs that may need to be included. Make sure any government rebates you are entitled to are included in the final quote.
3. Determine How Much Electricity Your Solar Panels Will Generate
Your solar power consultant will be able to discuss with you how much electricity your panels will generate, and how this will compare to your current energy usage.
4. Go Through Any Financing Options You Have Chosen
If you have chosen to finance your solar panels through a finance company, consider the interest payable. Don’t forget to add this onto your ROI calculations.
5. Calculate the Total Financial Benefit
After you have calculated exactly how much the solar energy system will cost, you can then crunch the numbers to see how much financial savings you will make. If you will be producing more solar energy than you use, you can look into any Solar Renewable Energy Certificates (SRECs) that you can sell to the utility company and add this onto your financial benefit. – Delete N/A in WA
6. Do Your Final Calculations
Now you can do your final calculations to find out your ROI. For example, if the total cost of your panels were $10,000 and your yearly savings is $2,000, then your payback period would be 5 years. After this time, you would be making a return on this wonderful investment, not to mention contributing to a more sustainable future!
Ask Weather Wizard for the Best ROI
At Weather Wizard, we are experts in solar and are more than happy to make sure the return on your solar panel investment is exceptional. We will discuss your needs and provide you with only the best custom solution. Weather Wizard prides itself on providing premium quality solar panels and honest, high quality service to our local Perth customers. Book a free consultation today by calling +61 8 9302 2965.