Homeowners often ask: How long will it take to recover my investment in solar? The answer depends on several factors, but most homeowners in California see a payback period of 5-8 years.

What Impacts Solar Payback Time?

  • Electricity Rates – The higher your electricity costs, the faster your savings add up. California’s high utility rates mean quicker ROI for solar owners.
  • Solar Incentives – The 30% federal tax credit, local rebates, and net metering programs can significantly reduce upfront costs.
  • Energy Consumption – The more energy your home uses, the greater the savings from solar.
  • Financing vs. Cash Purchase – Homeowners who buy their system outright see a faster payback than those who finance it.

Real Example of Solar Savings

A homeowner in California installs a 6 kW solar system for $15,000 (after incentives). If their electricity bill savings average $2,000 per year, they will break even in 7.5 years. After that, they enjoy decades of free electricity!

Solar is an investment that pays off over time, protecting you from rising electricity costs. Want to estimate your solar payback period? Contact CJ Yamda at Solar in one today!