In the solar industry, you often hear the term “payback period” tossed around. But because there are 2 different types of “payback periods” in solar, many people get confused.
Very quickly, you have:
- energy payback period– the length of time required for your San Diego solar installation to generate more energy than what was used to manufacturer the system
- financial payback period – the length of time required for the electricity savings offered by your San Diego solar installation to fully cover the upfront cost of buying and installing your system
San Diego Solar Installation – Financial Payback Period
Like energy payback periods, financial paybacks vary considerably. Let’s see why:- areas with more sunlight generate greater electricity savings – and thus shorter payback periods. San Diego is pretty sunny, so we’re lucky
- areas with high utility rates typically offer faster payback periods. This is because solar helps to shield you from high electricity prices. Again, San Diego is a great place to install solar. We have expensive electricity – and the rates keep going up
- heavy energy users will realize larger savings with time