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Solar Panel Payback Rates

Ean GoodguySeptember 4, 20181220

Solar Panel Payback Rates

There is a multitude of people out there analyzing and studying the cost of solar.  The price of solar fluctuates, and it's important to have people paying attention to that.  The reason it is important is so that the consumer can have some benchmarks to work within before making their choices about which solar panel system works best for them.  One metric list is called the Solar Power Ranking report, and a lot goes into compiling that every year. Every year, we analyze 612 data points about residential solar power in the states to determine the best and most inadequate places to put panels on your homes or businesses.

The Ranking Explained

The ranking by which we assess the states include incentives, legislative policy, and financial factors. This produces some significant outcomes, the most immediately compelling of which might be system payback time. Meaning, how long it takes to break even on your investment in solar, and even, you break even over the long term in every state in the country.

The estimate that defines payback time relies on all the ways you can save money on or make money with solar panels. Variables that are as varied as the states themselves present several ambiguities.

Savings from and payments for the electricity generated by the panels

For instance, in Massachusetts, you pay $18,750 for a universal 5-kW solar system. That’s the upfront cost. By the end of year 1, you deduct the state and federal tax credits for a total of $6,625 in savings, bringing the price down to $12,125. Those are the incentives. Then you take the power savings and SREC payments into account, and you deduct another $2,895 from the cost, taking it to $9,230. Your complete solar panel system costs will be paid off in just 4 years if you can follow this proceeding form. With incentives, savings and payments, an $18,750 investment pays itself back in 4 years and keeps earning you money for at least the usual expected lifetime of 25 years.

Below Are The Facts

Below we have provided the solar payback times for all 50 states as of 2016, with IRR - Internal Rate of Return listed adjacently:

State Name    Years to Payback    IRR

Internal Rate of Return for Hawaii    4    35.1%

Internal Rate of Return for Massachusetts    4    30.7%

Internal Rate of Return for Louisiana    6    22.2%

Internal Rate of Return for Washington DC    6    17.5%

Internal Rate of Return for New York    7    19.8%

Internal Rate of Return for Rhode Island    7    18.4%

Internal Rate of Return for New Jersey    7    18.3%

Internal Rate of Return for Oregon    7    15.2%

Internal Rate of Return for Connecticut    8    15.6%

Internal Rate of Return for Illinois    8    13.7%

Internal Rate of Return for North Carolina    8    13.1%

Internal Rate of Return for New Hampshire    9    14.3%

Internal Rate of Return for South Carolina    9    13.6%

Internal Rate of Return for California    9    13.4%

Internal Rate of Return for Maryland    9    13.0%

Internal Rate of Return for Arizona    10    12.7%

Internal Rate of Return for Utah    10    12.5%

Internal Rate of Return for Delaware    10    11.8%

Internal Rate of Return for New Mexico    11    10.4%

Internal Rate of Return for Pennsylvania    11    10.0%

Internal Rate of Return for Minnesota    11    9.2%

Internal Rate of Return for Vermont    12    9.9%

Internal Rate of Return for Texas    12    9.8%

Internal Rate of Return for Colorado    12    9.5%

Internal Rate of Return for Iowa    13    8.7%

Internal Rate of Return for Maine    13    8.6%

Internal Rate of Return for Florida    13    8.2%

Internal Rate of Return for Missouri    13    8.2%

Internal Rate of Return for Wisconsin    13    7.9%

Internal Rate of Return for Nevada    13    7.5%

Internal Rate of Return for Kansas    14    7.3%

Internal Rate of Return for Mississippi    14    7.3%

Internal Rate of Return for Tennessee    14    7.0%

Internal Rate of Return for Virginia    14    6.8%

Internal Rate of Return for Ohio    14    6.0%

Internal Rate of Return for Oklahoma    15    6.5%

Internal Rate of Return for Alaska    15    6.4%

Internal Rate of Return for Idaho    15    6.4%

Internal Rate of Return for Michigan    15    6.4%

Internal Rate of Return for Montana    15    6.4%

Internal Rate of Return for Alabama    15    6.2%

Internal Rate of Return for Georgia    15    6.2%

Internal Rate of Return for Nebraska    15    6.2%

Internal Rate of Return for Wyoming    15    6.2%

Internal Rate of Return for South Dakota    15    6.0%

Internal Rate of Return for Indiana    16    5.6%

Internal Rate of Return for Washington    16    5.2%

Internal Rate of Return for North Dakota    17    5.0%

Internal Rate of Return for Kentucky    17    4.9%

Internal Rate of Return for West Virginia    17    4.5%

Internal Rate of Return for Arkansas    18    3.9%

These IRRs can inform you about your savings and earning potentials for solar panel installation and use.  Check out HahaSmart today to get the lowest prices available and let's make this happen.

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