Understanding the financial aspects of solar installations is crucial for making informed investment decisions. While upfront costs are significant, long-term savings and incentives make solar financially attractive.
Residential solar systems cost $15,000-$25,000 before incentives. System size depends on household energy consumption, roof area, and location. Commercial installations range from $50,000-$500,000+.
Average residential savings: $10,000-$30,000 over 25 years. Commercial systems achieve payback in 5-8 years with ongoing savings thereafter.
Federal ITC reduces tax liability. State and local programs offer additional incentives. MACRS depreciation benefits commercial installations.
Calculate payback period by dividing system cost by annual savings. Most systems achieve 5-8 year payback with 25+ year lifespan.