How to Calculate Solar Panel ROI
Solar power is a growing NJ industry, thanks to the drop in price for solar power, home generators and battery systems in the past few decades. With government credits it has become cheaper to install a new solar energy system than buying power from your utility. Energy rates rise almost every year while Solar energy provides a stable price for as long as you have a solar panel. It’s easy for businesses and homeowners to predict and budget for future expenses. Combined with financing options that reduce upfront cost, solar energy has become a great value for you and your family.
REDUCE YOUR ENERGY BILL WITH SOLAR PANELS.
The cost of power in New Jersey has gone up in 28 of the past 30 years, with an almost 40% increase in the last decade alone. History proves that people who remain grid dependent will pay more in utilities next year than they do now. This trend will continue each and every year. Green energy is the only way to break the cycle and reduce yearly energy costs.
YOU OWN YOUR HOME. WHY RENT YOUR ELECTRICITY?
With solar panels you can now own your energy and turn your monthly electric bill into an investment – not just another expense. If you’re purchasing power from a utility, your power bill will never decrease and will never go away. Today, solar power ownership in NJ is the smart way to purchase energy.
TAX CREDITS END SOON.
Did you know that if you act now, you can save off the cost of Solar Panels? You can receive Federal Tax Credits and an additional NJ State Tax Credit as well as saving every month off your utility bill with renewable energy. Have questions? Let us help guide you through the process to maximize your savings.
7 Steps to Calculating Solar Power ROI
When considering an investment in a solar panel system, it’s important to look at two things: Annual ROI (Return on Investment) and payback period. The ROI is how much return on your investment you’ll see each year. The payback period is the timeline for when your solar panels have paid for themselves.
- Review the last 12 months of your electricity bills to determine your average price of power each month.
- Determine the total installed cost of a solar panel system. This includes expenses such as photovoltaic panels, installation, permits, etc. Look on a recent bill from your utility to see how much you pay per kilowatt hour (kWh). Our Hughes staff can help you through the entire discovery process. To request an estimate of installed costs, complete our FREE Estimate Request.
- Your assigned Hughes rep will help you determine how much electricity your solar panels will generate.
- Hughes will identify the types of federal, state, and local government incentives you can take advantage of.
- Hughes will talk you through financing options based upon your needs and budget.
- Calculate the total financial benefit of your solar system. This includes any SRECs you can sell to the utility to help them meet their renewable energy requirements.
- Calculate your solar panel payback period and return on investment (ROI). (Solar Payback Period = Initial Net Investment / Yearly Benefit). For example, if your installed solar panel costs were $15,000 and your yearly benefit was $3,000, your payback period would be 5 years. A typical 5 kW solar PV system can easily see an ROI of 20% in the first year.
To find out how long it will take solar panels to pay for themselves contact Hughes today for a free in home consultation.
Additional Benefits Of Solar Power.
- Renewable energy has never been more affordable
- You can dramatically reduce or even eliminate your monthly electric bill
- You can actually earn money by producing more power than you use each month
- Shield yourself from future energy rate increases
- Take advantage of solar rebates and federal tax credits
- Gain freedom from utility company
- Increase the value of your home or business
- Create local jobs in the energy market
- Protect the environment
- GUARANTEED production for over 25 years
- And much, much more!
Business And Solar Energy
Solar power can reduce your operating costs on Day 1, while protecting your business from unstable energy rates. Most important, renewable energy helps decrease your carbon footprint, helps you meet environmental requirements and makes you money. Simply put, renewable energy makes good financial sense.
- Solar energy systems have little/no moving parts which means minimal operation and maintenance (O&M) is needed
- 25-year warranty gives you peace of mind
- Solar panels dramatically reduces your utility operational expenses
- Producing your own electricity from a solar panel protects you from rising energy rates
- Many businesses achieve 25-55% in after-tax returns
- Government credits and rebates may reduce 30% or more of costs
- Lease options are available to avoid upfront costs
- Solar helps you meet government-mandated greenhouse gas emission targets by reducing your carbon footprint
- Going green promotes your company as an environmentally responsible and likeable company
THE SMART WAY TO PURCHASE POWER
Hughes has a passion for all things Green. We’ve helped people in NJ save off their monthly electric bill with solar energy, home batteries, home generators, and other green power equipment. Our clients save on their energy bills and are now energy independent. Solar energy has finally become the smart choice for buying power.
Hughes, headquartered in NJ, has been a leader in solar energy by introducing and installing the latest, state-of-the-art solar panel and photovoltaic (pv) technology. Our team consist of dedicated specialists, solar energy system designers, engineers and North American Board of Certified Energy Practitioners (NABCEP).
Hughes makes it easy to go green with several payment options available to qualified homeowners. If you’re like most people, you have a lot of questions about renewable energy. How much does solar power cost, how does it work or how quickly will you save on your monthly power bill? We can answer many of your questions over the phone, by email or by at an in home consultation with one of our experienced renewable energy specialists. Simply contact and then relax. We’ll answer your questions and take care of all the details. Hughes entire team is deeply committed to our customers now and into the future.