• How Long Until You Recover Cost of Solar Installation? ROI payoff Solar Panels
• no.1 — Professional Installation of Premium Retail Solar Panels
• no.2 — Make Your Own Solar Panels and DIY Installation
• no.3 — Buy Cheap Solar Panels and Install Them Yourself
• Cost Per Watt for Different Solar Installation Types
• Making Sense of Kilowatt Hours and Kilowatts
• Calculating Size of the Solar Panel System Your Home Requires
• How Long Before These Solar Panel Systems Pay For Themselves?
• Can You Build Your Own Solar Panels?

How Long Until You Recover Cost of Solar Installation? ROI payoff Solar Panels

How long do you have to wait until solar panels pay for their own installation? What is the return on investment ROI and payoff of solar panels available in the marketplace today? That is a good question — if it has a quick return on investment then it makes sense to install them.

There are three methods of installing solar panels. The most expensive of the methods — you could buy commercial retail solar panels installed by a professional. The cheapest method of installing solar panels — you could build your own solar panels and install them yourself. Somewhere in between is the final method — you could shop for cheap solar panels online and then install them yourself.

1. Commercial Installation and Panels — The Most Expensive
2. Make Your Own and Self Installation — The Cheapest
3. Buy Cheap Solar Panels and Self Installation — Costs Are In Between

At this point, we are after the “cost per watt” of a solar panel, adjusted for the labor to install them. Once we have the cost per watt, we will examine just how many watts your house will need — then we can determine the size of the system you need to install. Cost per watt * size of system being installed = total cost of your installation. Then we will examine how much this system earns you over time to discover how long it will take for you to break even on a solar installation.

no.1 — Professional Installation of Premium Retail Solar Panels

How much does it cost to have solar panels installed by a professional in your area? Of course, prices can vary — it would be a good idea to investigate installers in your area to determine the cost per watt. An often quoted figure of retail solar panels + professional installation is $7 to $9 per watt — an all-inclusive fee covering both the cost of the solar panel as well as the cost to have them professionally installed.

The good news is, with a professional solar panel installation — you will most likely qualify for rebates or other incentives. The Database of State Incentives for Renewables & Efficiency (DSIRE) is an easy way for you to check what rebates you qualify for, based on your location and which electric company you are using. As you read many of the requirements necessary to qualify for rebates, you will notice that many incentives require a “UL” (Underwriter Laboratories) product safety certification, or that the solar panel be “new” — which a “build your own solar panel” would most likely not qualify. These incentives can make the $7 to $9 price per watt cost of retail solar panels and professional installation actually cheaper.

no.2 — Make Your Own Solar Panels and DIY Installation

On the other end of the spectrum, it is possible to get your cost to under $2 per watt when you make your own solar panels and install them yourself (for the solar panel itself less than $1 per watt — but there are other things necessary for a homemade solar panel installation which I cover more in detail here: real cost of homemade solar panel installation. In short, you’re looking at also obtaining a charge controller, inverter, and probably a battery bank unless you want to do a plug and play grid-tie inverter to outlet which I do not recommend.  The entire homemade solar panel installation will probably cost more around $2 or less per watt.) This will give you a much better ROI (return on investment) and a much quicker payoff. This involves shopping for cheap solar cells — off Ebay, Amazon or other places (our guide shows you places to obtain cheap solar cells), and then assembling them into a solar panel. All other materials necessary to make a solar panel should be available at your local hardware store. We show you how to solder the solar cells and all other aspects of how to make solar panels.

Making your own solar panels can be a fun and rewarding hobby. We will show you how to easily build a solar panel for under $2 per watt.

no.3 — Buy Cheap Solar Panels and Install Them Yourself

You can search Amazon or Ebay for cheap, already-made solar panels, or solar panel kits with minimal assembly. One good place to shop for cheap solar prices is here the cheapest start close to $4 per watt and progress to over $6 per watt. Regarding point #1 above, can we assume that, if the retail solar company is selecting the solar panels you will buy, that they will only be offering premium, expensive solar panels (they make money on the sale, right?) Therefore it can be a good idea to shop for your own cheap solar panels. At the time of the writing (Fall of 2010) the cheapest solar panels that are manufactured and ready for purchase are close to $4 per watt, and requiring you to do the installation yourself.

Cost Per Watt for Different Solar Installation Types

As a recap thus far, we have determined that a professionally installed solar panel system will run somewhere around $7 to $9 per watt installed for you. Building your own solar panels will make the installation cost less than $2 per watt. Buy cheap solar panels and install them yourself to achieve prices around $4 to $7 per watt.

Knowing how much per watt your solar panel system will cost is one piece of the puzzle. We also need to know how much power your house consumes, so we know how large of a solar panel installation you will require. Lets cover kilowatt hours so you will know how much energy you can expect from your solar panel installation.

Making Sense of Kilowatt Hours and Kilowatts

How many kilowatt hours do you consume a month? If the goal is to install a solar panel system that will entirely offset your monthly bill, it makes sense to cut your power consumption down. Of course, you already know what your monthly electric bill is. Do you know if your monthly bill is average? Here is an overview of average kilowatt hour consumption, so we can give examples of solar panel installation costs.

According to the US Energy Administration, in 2008, the average annual power consumption for a US residence was 11,040 kWh, or approximately 920 kilowatt hours per month. Using this as the base amount of watts per month a household consumes, lets discover what it costs per month on average to buy that power from a conventional power company. One website that has done a good job in tracking the cost of power is Michael Bluejay’s cost of electricity page. As you can see, there are a great number of factors which alter the cost of electricity. He came to the conclusion that 15 cents per kilowatt hour is a reasonable assumption, as an average — so we will use that here as well. At 920 kilowatt hours per month, and an average cost per kilowatt hour of 15 cents, we conclude that average US residence electric bill is approximately $138 a month.

As we investigate what it will cost to build your own solar panels, one goal we have is to discover how long it will take for you to pay off the panels, break even and start seeing a profit. The 920 kilowatt hours a month is how many kilowatts the solar panel system needs to produce each month in order to break even. The $138 a month is the figure we need to use in determining how quickly the system is paid off.

Calculating Size of the Solar Panel System Your Home Requires

What will it take for a residence to break even on 920 kilowatt hours? That is difficult to calculate, because every home in the US receives a differing amount of sunshine, is a different distance from the equator, and receives a differing amount of sunlight hours a day. Our solar panel guide comes with a solar panel calculator to estimate the electricity which will be available for your home, no matter where it is located within the US. For the purpose of this article, we will use a home located in San Francisco Bay, California.

A home in San Francisco Bay area will need an approximate 4 kWh solar panel system to break even on 920 kilowatt hours, based on the amount of sunshine hours, lack of clouds and distance from equator. Understanding this, how much will it cost to install a 4 kWh system?

• Retail Solar Panels and Professional Installation: 4 kWh (4000 watts) * $7 to $9 = $28,000 to $36,000. (Cost may be reduced with various rebate incentives and tax credits).
• Make Solar Panels and Install Yourself: 4 kWh (4000 watts) * approximately $1.89 per watt = $7560. See a breakdown of that here.
• Buy Cheap Solar Panels and Install Yourself: 4Wh (4000 watts) * $4 to $7 = $16,000 to $28,000. (Cost may be reduced with various rebate incentives and tax credits).

How Long Before These Solar Panel Systems Pay For Themselves?

Retail Solar Panels with Professional Installation:  Assuming that your system will cost between $28,000 and $36,000, and assuming an average monthly electric company bill of $138, this means  a 17 to 22 year period until the solar panel system for your home pays for itself.  This is assuming that you are not getting a loan for the amount, which would push the payoff period back many more years.  This is also not taking into account rebates, which could reduce the time period.

Make Your Own Solar Panels and DIY Installation:  Assuming that the system will cost approximately $8000, and that the monthly electric bill is $138, then a typical DIY solar panel installation will take approximately 58 months to pay off (about 4 3/4 years).

Buy Cheap Solar Panels:  Following we give a payoff schedule for solar panels that cost various amounts, also assuming a $138 electric bill.

• $4 per watt for 4 kWh solar installation = $16,000.  Approximate 10 year payoff ROI, not including interest or rebates.
• $5 per watt for 4 kWh solar installation = $20,000.  Approximate 12 year payoff ROI, not including interest or rebates.
• $6 per watt for 4 kWh solar installation = $24,000.  Approximate 14 1/2 year payoff ROI, not including interest or rebates.

Each system has its benefits and drawbacks, depending on your individual circumstances.  A retail solar panel installation by a professional will make it so you do not need to worry about anything — but paying off the system for a few decades.  They will most likely already know what tax breaks and rebates you qualify for, and will assist you with the required paperwork.  Retail solar panels with professional installation is the least-hassle but most expensive installation type.

Building your own solar panels can certainly save you money, and it is a project that anyone is capable of with the right instructions.  With only $4000 invested and a return on investment (ROI) of 2 1/2 years, puts do-it-yourself solar panels within the grasp of many families.  Additionally, you can slowly integrate this system, adding solar panels as you go.  The downside — although you will still be able to apply for tax breaks, many financial incentives such as power company rebates will not be available to you, as they require “new” solar panels with UL listings.  Another downside, although building your own solar panels can be a fun and rewarding hobby, it may not be everyone’s cup-of-tea.

Buying cheap solar panels and installing them yourself is a decent trade-off to save money on your solar panel installation.  The downside is that you still have to get down-and-dirty with the installation part, your participation in the installation process is still required.  The good thing is that most cheap solar panels you would buy on the internet will have the UL listings and qualify for all rebates available in your area.

Can You Build Your Own Solar Panels?

The cheapest option is to make your own solar panel.  Is this a project you can actually do?  The truth is, you do not have to be an engineer to build a solar panel.  With the right instructions, and using detailed blueprints, instructions and training videos — you CAN build your own solar panel.

This will save many thousands of dollars on your solar panel installation for your home.  We show you where to obtain discounted solar cells — everything else beyond these can be obtained at your local hardware store.  Here is a list of what you receive when using our solar panel guide:

• Construct cheap solar panels. Save thousands over retail and build your own solar panel for less than one hundred dollars!
• Learn how many solar panels you will need to generate your required voltage by using the included solar power calculator.
• Learn how to install solar panels on your home roof, just like the professionals.
• Understandable tutorial on finding solar tax credits, this solar panel manual has every forms needed.
• Diagrams for electrical wiring for assembling solar panels in a safe manner.
• Video instructions, see each important step performed with our high quality training videos. We have well over two hours of video.
• Build your own wind turbine. Our instructional kit has details on making your own wind turbines.
• Satisfaction guaranteed. For two months you are allowed to evaluate the training manuals to evaluate their quality. If the materials do not meet your expectations, you are guaranteed a 100% money-back refund, no questions asked.

Order Our Solar Panel Instructions, Blueprints and Videos Today!

Simply click on the link below to read more about what you receive with our solar panel system, including blueprints, diagrams, instructions, and detailed step-by-step videos on every part of the building and installation process!

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