Invest In Your Home With Solar
Going solar is about more than savings, it’s also a great investment opportunity. Not only are there federal tax incentives for going solar right now, your savings from going solar are not taxed like normal investments. Going solar keeps more money in your pocket now than ever before.
How Does Going Solar Generate An ROI?
Your ROI from having a home solar panel system installed is generated from the savings you gain on your utility bill.
If you spend $20,000 on your solar panel installation, and over the 20-year warrantied life of your solar panels you save $30,000 on your utility bill, your return on your investment or ROI would be 50% or $10,000. Typically, a good return on investment is considered 7-10% based on the historical average of returns from the S&P 500 stock.
So with a 50% return on your solar system, it’s an easy choice to invest in. These returns on your investment can also increase as you calculate the future rate hikes predicted from utility companies and factor in the savings you can add right now from federal tax incentives and other programs.
What Is ROI?
ROI is short for Return On Investment. This refers to the amount of profit you generate based on the amount you initially invested expressed as a percentage. For example, if you invested $50 in a lemonade stand and you made $100 your return on investment is 100%. A 100% ROI means you made everything you invested, and then doubled the initial investment.
How Can You Calculate Your ROI?
The basic way to calculate your return is to take your return (profits) divided by your Investment (cost) and then multiply that by 100%. This formula will give you your basic ROI.
When factoring your return for your solar system you need to include all savings to get the most accurate number. This includes savings on your utility bill, federal tax incentives, and any other savings or profits directly related to your home solar panel system.