Gold Loan Interest Rate Sbi Calculator

After federal tax credits and rebates.

Reduction in your average utility bill.

Calculation Results

Payback Period:

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25-Year Net Savings:

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Annual ROI:

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Total Profit:

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function calculateSolarROI() { var cost = parseFloat(document.getElementById('systemCost').value); var monthlySave = parseFloat(document.getElementById('monthlySavings').value); var size = parseFloat(document.getElementById('systemSize').value); var maintenance = parseFloat(document.getElementById('annualMaintenance').value); if (isNaN(cost) || isNaN(monthlySave) || isNaN(size) || isNaN(maintenance) || monthlySave <= 0) { alert("Please enter valid positive numbers for all fields."); return; } var annualSavings = monthlySave * 12; var netAnnualBenefit = annualSavings – maintenance; if (netAnnualBenefit <= 0) { alert("Maintenance costs exceed annual savings. Please check your inputs."); return; } var payback = cost / netAnnualBenefit; var twentyFiveYearSavings = (netAnnualBenefit * 25) – cost; var roiPercentage = (netAnnualBenefit / cost) * 100; var totalProfit = twentyFiveYearSavings; document.getElementById('paybackYears').innerText = payback.toFixed(1) + " Years"; document.getElementById('longTermSavings').innerText = "$" + twentyFiveYearSavings.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('annualROI').innerText = roiPercentage.toFixed(2) + "%"; document.getElementById('totalProfit').innerText = "$" + totalProfit.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('solarResults').style.display = 'block'; }

How to Understand Your Solar Panel ROI

Deciding to switch to solar energy is a significant financial commitment. To determine if it's a sound investment, you must look beyond the initial installation price and calculate the Solar Payback Period. This is the amount of time it takes for the energy bill savings to equal the cost of the system installation.

Key Factors in the Calculation

• Gross Cost vs. Net Cost: Always calculate your ROI based on the net cost. This includes the 30% Federal Solar Tax Credit (ITC) and any local state or utility rebates.
• Electricity Rates: The more your utility provider charges per kWh, the faster your solar panels will pay for themselves.
• SREC and Incentives: In some states, you can earn Solar Renewable Energy Certificates (SRECs) for the power you produce, which can be sold for additional profit.
• Degradation: Most modern solar panels lose about 0.5% efficiency per year, which is why we calculate a 25-year window for long-term profit.

Practical Example

If you install a system for $20,000 and receive a $6,000 federal tax credit, your net cost is $14,000. If that system saves you $150 per month ($1,800 per year) and requires $100 in annual maintenance, your annual benefit is $1,700.

Example Payback: $14,000 / $1,700 = 8.23 Years. After year 8, all energy produced is essentially "free" profit for the remainder of the system's life (usually 25-30 years).

Maximizing Your Solar Return

To ensure the fastest payback period, consider shifting heavy appliance usage (like dishwashers or laundry) to daylight hours when your panels are producing peak energy. This maximizes "self-consumption" and protects you from utility "time-of-use" peak rates. Additionally, ensure your roof is in good condition before installation to avoid the cost of removing and reinstalling panels later.