A Guide to Solar Panel ROI
Solar Panel Cost:
Savings, Costs, & ROI of A Solar Installation
The Economics of Solar Energy
ROI comes in two ways:
- Paying less money per month for your energy usage
- Selling excess energy production back to the grid

Generating Your Own Power
“Allows most homes and businesses to generate 80-100% of their energy needs through a solar power system, and many of our customers are able to produce more energy than they consume during different times of the year.”
Right off the bat, any energy you’re producing through your solar system is the energy you don’t need to buy from a power company, which already equates to savings.
Net Energy Metering (NEM)
California is a state that uses automatic “Net Energy Metering.” This is an automated program that allows your solar power system to sell excess energy back to the grid at market rates in real-time.
Then, you can use the credits generated from this sale to purchase power from the grid during the non-production time (at night). The beauty of this is that because you produce and sell power during the peak hours of daytime and purchase power at night, you’ll be selling energy at peak market rates but only buying it at non-peak rates: in other words, you very literally will “buy low, sell high.”

Incentives and Rebates
There are several incentives and rebates available for solar installations across the United States.
The largest incentive is currently the Federal Investment Tax Credit, which allows for a 30% tax credit on any solar installation, with no size restriction. Note, that this is a tax credit, and not a tax deduction, and thus comes directly off your tax liability for the year
Tax Credit Example
Solar System Cost = $25,000
Tax Credit = 25,000 x 30% = $7,500
Total Tax Savings = $7,500
- Federal Investment Tax Credit (ITC)
- 30% Tax Credit
- Available for any solar installation project
- California Solar Initiative Rebates
- Rebates for new solar installations
- The available pool of funds diminishes as more people go solar. Most rebates have been claimed in California
- CPUC Self-Generation Incentive Program
- Applies to battery installations
- Available in a lottery system


What Can I Save by Switching to Solar Power?
What does this look like in terms of the bottom line?
Every system is different, so the only way to fully understand your savings is to schedule a free solar consultation. Over the lifetime of a solar power system, savings – and ROI – are significant.
Payback Period
It takes most customers around 4 to 6 years to pay off the cost of their solar installation. Even before that point, homeowners who switch to solar pay less per month towards their installation cost than they did for a regular power bill, but after the payback period, your solar system will generate pure profit. Our customers often save thousands of dollars per year from their solar system, and savings for a typical customer can exceed $90,000 over the 25-year lifespan of the solar system!

Get a Solar Panel Estimate!
Schedule a Solar Power Consultation in the Bay Area
Switching to solar is a great way to reduce your impact on the environment and create a more sustainable, independent lifestyle, but thanks to the savings generated by a solar system, it makes economic sense. Let us show you how making the switch to solar power can help you shave thousands of dollars on your energy costs year after year: book a free solar consultation today!

Questions? Call Us (707) 285-7037
We are Here to Help You! 24/7
