Definition
The number of years it takes for cumulative solar savings to equal the initial system cost. National average is 7-12 years. States with high electricity rates and good incentives (CA, NY, MA) see payback in 5-8 years. Systems typically last 25-30+ years, providing 15-20 years of pure savings.
Related Solar Terms
- Photovoltaic (PV)
The technology that converts sunlight directly into electricity using semiconduc...
- Kilowatt (kW)
A unit of electrical power equal to 1,000 watts. Residential solar systems are t...
- Kilowatt-Hour (kWh)
A unit of electrical energy equal to one kilowatt of power sustained for one hou...
- Net Metering
A billing arrangement where excess solar electricity sent to the grid earns cred...
- Inverter
A device that converts the DC (direct current) electricity produced by solar pan...
Understanding solar terminology helps you communicate more effectively with installers and evaluate quotes accurately. Use our solar cost database to find fair prices for any solar service.