In Maryland, solar panels have become increasingly popular in the last few years, and with good reason. Actually, installing solar panels is a smart choice for a number of reasons: households are able to reduce their environmental impact, achieve energy independence, and see a decrease in costs for the energy they use.
However, Maryland solar panels are a substantial investment, and it is reasonable for families to wonder how long it will take to recover the cost of the system. Multiple factors go into not only the cost but also the payback period. Understanding how this timeline works is a vital part of making an informed decision about solar for your home.
Here is an overview of how long it takes for solar panels, installed in Maryland, to pay for themselves based on the initial cost, what factors impact that cost, and more.
How Much Does Solar Cost?
There is no single number that works across the board for calculating how much solar panels will cost. Solar arrays, installed by professionals who create customized plans according to your home’s specific needs, will be the most effective use of your money.
In general, the average system of 10kW will cost about $30,000. However, the solar tax credit can reduce this bill to around $21,000 for the finalized system.
Larger arrays for more substantial energy needs or larger buildings will naturally cost more, but the price remains similar in ratio. For a 20kW solar array, expect around $63,000 in costs that can be reduced by the tax credit to approximately $44,000. Once the panels are installed, further savings are possible through options such as selling solar credits on the marketplace.
What Impacts the Cost of Solar?
The exact cost of your solar panel system will depend on multiple factors that are unique to your home and energy usage. Expert installers who are creating a customized array will consider elements such as:
- The design of the array, ensuring it fits appropriately on your roof
- The shade on your property, which may require placing more panels in one location over another to maximize production
- The materials, such as the solar panels, inverters, racking systems, and any batteries or specialty additions you select
- Upgrades that are important to you, such as a breaker box or premium panels
- The fees to obtain permits and connect the panels to the grid
These are just a few of the elements that will inform the total cost of your solar panels. You can calculate how long it will take for solar panels to pay for themselves if you understand the total cost upfront.
How to Calculate Your Payback Period
Once you have a quote for the solar installation, you can then calculate the payback period. First, determine how much energy your home uses. You can look at previous energy bills to get started, as many will contain an overview of your consumption.
While you are doing this, make sure that you know how much the electricity itself costs; you’ll need this later to figure out the value of the energy that your solar system is producing. On average, households in Maryland are paying approximately 16 cents per kWh for electricity.
Next, determine how much energy your solar array will be producing. That is your savings amount. Once you know your savings amount per month, simply divide the cost of the system by the amount saved per month.
For instance, if your solar panels cost $20,000 and your energy bill of $184 per month has been eliminated, divide 20,000 by 184. This results in 108.70, or essentially 109 months. It will take you 109 months, or around 9 years, for the savings you achieved from your solar panels to pay for what you invested in the system.
One of the simplest ways to reduce the amount of time it takes for Maryland solar panels to pay for themselves is to save money (and time) by using professional installers.
Look for installers with years of experience who participate in the Amicus Solar Cooperative, marking them as members of a forward-thinking community that stays on the cutting edge of innovations in solar energy. Skilled installers will be full service, pulling permits for you and completing applications on your behalf, eliminating potential penalties and mistakes that could cost you extra.
Get Solar Panels Installed Right the First Time
Solar is an effective way to free yourself from energy dependence and work toward a cleaner environment saving you money over the life of the system.
The experts at Ipsun Solar craft personalized solar arrays that fully address a household’s energy needs, giving you confidence in your investment and how quickly it will pay for itself. Contact Ipsun Solar to schedule an estimate to get started on your full service solar installation in Maryland.
