How to calculate the payback on a solar panel

Solar panels are becoming cheaper and it is now possible to get a 12V solar panels for a very reasonable price. If you’d like to purchase solar panels and use 12V around your home to replace electricity provided by an electricity retailer it can now be done, but the question becomes, is it cost effective?

The technique I use is to plug in the purchase cost, wattage, peak hours of sunlight and current retailers electricity pricing into the Energy Cost Calculator which gives me who much I could potentially save per year. Then divide the savings by the original cost and you’ll get the number of years it takes to pay back the cost of the solar panel.

You should keep in mind the solar panel is just one component. You will also need wiring, a battery charging regulator and a battery (plus labour), if you wish to store energy for use when the sun isn’t shining.

There are times when using solar makes sense financially and then there are times when it is hard to justify. Using the Energy Cost Calculator is a good approach to helping you make a more informed decision.

Kelvin Eldridge
www.OnlineConnections.com.au