Solar ROI (Return on Investment)

ROI from solar power shows how profitable investing in a PV system can be. It compares how much financial benefit is left after expenses with the full amount that was spent starting and running the system. To calculate, add up electricity bill savings, payments from programs like RECs or SRECs and the tax credits or rebates, then take away the total installation, equipment and maintenance fees not covered by warranty. The net benefit is then shared by the total system cost and generally given as a percentage or the time it takes for savings to match the investment. A positive ROI means the system earns more money than it spends to keep running. Objectives for solar ROI involve looking at the initial system cost, regular electricity prices, the amount of sunlight available, system performance, rate at which it degrades, variety of repayment plans and whether government incentives are accessible, especially the ITC. Doing a detailed ROI analysis allows people considering solar to see the financial benefits, proving that solar energy is an investment as well as an environmental decision.