payback period of solar panel

What are the expected returns and payback duration for solar panel investment in Lucknow?

Understanding Payback Period of Solar Panel in Lucknow

Are you a Lucknow resident looking to save on your electricity bills while contributing to nature and sustainable living? 

Investing in solar panels could be the perfect solution for you. Not only do solar energy systems pay for themselves over time, but they also offer substantial savings on your monthly electricity bills.

What is a Solar Payback Period?

Purchasing a solar system is one of the few home improvements that actually pays for itself over time due to the significant savings on electricity bills in lucknow. For many potential customers, this is one of the primary reasons they invest in a home solar system in lucknow

The solar payback period represents the amount of time it takes to recoup the cost of installing solar panel

Depending on your installer, the number of solar panels you install, and how you pay for your system, the length of your solar payback period will vary. The average solar payback period is considered to be less than 10 years.

What Is Considered a Good Payback Period for solar panel in Lukcnow?

Although the typical payback period for solar panels averages six to 10 years, this is a broad range because so many factors need to be considered to establish your payback period. For example, investing in a larger solar power system will incur a higher upfront cost, but it can lead to more substantial monthly savings.

Additionally, if the cost of electricity from your local utility company increases significantly, this enhances your long-term savings and improves your payback period.

Modern photovoltaic (PV) solar panels are designed for longevity, maintaining at least 80% efficiency over a minimum lifespan of 25 years. Some solar panels can even last up to 35 years, according to the Department of Energy. 

So, if it takes 10 years to recover the cost of your solar panels, you can still expect savings on your electricity bills for another 15 years, which is an excellent investment.

Solar companies can provide you with an estimate of your payback period. Make sure to get a few quotes to find your best option. Getting the best price for comparable-quality solar panels will influence your savings.

Why Choose Solar in Lucknow?

Switching to solar power not only helps you save money but also contributes to a cleaner and greener environment by reducing carbon emissions.

Lucknow, with its ample sunlight throughout the year, is particularly suitable for the solar panel installation in lucknow and consumption of solar energy in there homes. 

Factors That Can Impact Your Solar Payback Period In Lucknow

The solar payback is influenced by several factors, including solar panel costs, financing, installer rates, credits and rebate incentives, solar renewable energy certificates (SRECs), electricity consumption and rates. 

Payback period is the time taken to break-even or to get back your solar investment. Calculating the payback period for solar panels in India is easy but you need to understand certain components of the investment before you begin.

  • Average electricity bill and power consumption: How much electricity do you consume per day, month or year? This can be found in your electricity bill. The electricity bill mentions the number of units consumed by you for the given period. For further estimation let us assume your average electricity consumption per month is 400 units.
  • Solar system size estimate: Depending on the electricity consumed by you, you will get an estimated solar system size. If you consume an average of 400 units, installing a 3kW should offset your consumption from the grid. For installing the system you will require 250- 300 sq. ft of shadow-free space.
  • Cost of the solar system: The solar system’s cost depends on its size. Having a larger solar system reduces the system costs per kW and generates a large amount of electricity resulting in faster payback. Now let us see how many months or years this system can pay for itself or what its payback period of solar panels in lucknow residents.
  • Amount saved: Depending on the amount of sunlight of the sun, the solar system will generate electricity. On average, a 1kW system can generate 4 units of electricity per day. So, a 3kW system can generate 360 units in a month. Now on average if you consume 400 units, the solar system will supply 90% of your electricity. You just need to pay for the remaining 10% or 40 units to the electricity board. Assuming, grid tariff rates of Rs. 7/-, you have to pay only Rs. 280 and your system generates electricity worth Rs. 2,520 every month. This means you save Rs. 30,240 every year.
  • Solar Payback period: As we worked out some averages above, the solar panel payback period for the assumed installation can also be calculated. 

The payback calculated will vary with factors such as system size, cost, electricity generation & consumption, etc.

Other factors such as increasing grid electricity tariffs, availability of financial incentives, net-metering, and ease of solar panel installation with umangot solar are urging many homeowners and businesses to choose Solar power over traditional forms of energy.

Frequently Asked Questions (FAQs)

Q1) How many years do you have to pay back solar panels?

The number of years you have to pay back solar panels depends on the state where you live and the incentives and programs available. The timeframe varies due to numerous factors influencing the payback period, including the price of panels, incentives and rebates, electricity bill costs and financing.

Q2) Does solar pay for itself?

Solar panels recover their initial costs over time through savings on electricity bills. In many cases, central and state  incentive programs can help save homeowners or more off the installation of solar panels in lucknow , increases savings, which help solar panels pay for themselves.

Q3) What happens after I pay off my solar panels?

Once you pay off your solar panels, they will generate energy at no additional cost. As a solar customer, you’ll receive a monthly electricity statement comparing the energy your system produces to how much you use.