Solar Return on Investment: How Long Until Solar Pays for Itself?

Solar return on investment

Our customers Dennis and June Smith celebrated 5 years since their solar installation on October 19th. They recently emailed us to share that “everything has worked out just as you had planned” and to share a report detailing their solar return on investment.

The Smiths kept meticulous records detailing the financials of their solar installation. For example, their report included initial cost outlay, federal and state solar incentives, and total energy generation. They shared their spreadsheet with their family and us to showcase a real-life example of solar’s financial and environmental benefits.

How long before solar pays for itself

“The system paid for itself after approximately 4.5 years,” according to Dennis. The Smiths’ five-year net financial benefit has nearly reached $4,000 already. What’s more, their actual power generation exceeded our initial estimate by 1,995 kWh.

The Smith family’s SREC benefits have averaged $250/month for the past 5 years. Even if the variable SREC payment amount decreases to ~$200/month, the Smiths “can expect to receive payments until October 2025, totaling $12,000, in addition to no-cost electricity.”

Of course, every system is different, and solar incentives can change over time. On average, however, residential solar installations pay themselves off in 5-7 years. The return on investment for commercial solar installations is even faster!

Customer satisfaction is our goal

We love delivering quality solar products and installations for our customers across Massachusetts, and it’s especially rewarding when systems outperform our expectations. We work hard to ensure customer satisfaction. Receiving notes like these from our customers reinforces our commitment to our clients.

Dennis says, “I am very pleased with all aspects of our My Generation Energy experience – and pleased to share our story.”

To the Smith family: we are so grateful that you shared this story. And to all our customers: we strive to make your solar experience as successful, profitable, and enjoyable as the Smiths’. Contact us today for a free, no-contact site assessment to determine how long it might take you to start earning electricity savings like these.