Ignore the sales pitch. See the real numbers for your roof.
Many homeowners view solar panels as a home improvement expense, like a new kitchen. However, financially, it behaves like a high-yield bond. You pay an upfront capital cost, and in return, you receive a guaranteed stream of cash flows in the form of avoided electricity bills. Unlike the stock market, the 'returns' from solar are tax-free (savings are not taxed income) and are positively correlated with inflation: when energy prices go up, your savings go up too. This calculator estimates your Internal Rate of Return (IRR) and payback period to show you exactly how it compares to traditional investments.
Utility rates historically rise faster than general inflation (CPI). By installing solar, you are effectively locking in your electricity price at a fixed cost (the cost of the system) for the next 25+ years. While your neighbors' bills might double over the next decade, your 'bill' from the sun remains $0. It is one of the few financial instruments that guarantees protection against rising living costs.
Find out how long it will take to break even and how much you will save.
Enter your installation details to see the profitability.
