Are Solar Panels a Good Idea?

We all know making the switch to solar energy is good for the planet, but is it a good financial move? Here are 4 ways to evaluate residential solar as an investment.

Calculating Solar’s Payback Period

One way to look at solar’s return on investment (ROI) is to calculate the payback period. This is simply the cost of the system divided by the amount you save electricity each year. The average in Colorado’s Front Range is 13 years, far less than the lifespan of a solar array. 

Converting to a Simple ROI

Let’s put that payback period into perspective. If your payback period is 13 years, that means you will get 1/13th, or 7.7%, of your investment back annually. Solar is lower risk than the stock market yet offers significantly higher returns than bonds. 

Rising Energy Prices

When energy prices rise more than anticipated, your ROI from solar only increases. Record inflation has us all wishing we could’ve locked in grocery prices from a few years ago. You can still lock in energy prices by going solar. 

A Win-Win

Simply put, solar is a win-win: it’s good for your family’s finances and good for our planet. Altogether it’s easy to see why thousands of Colorado homeowners are going solar every year.