RETURN ON INVESTMENT CALCULATION METHODS

Earlier people assumed that solar panel systems might be very expensive and the return on investment will not be justified enough. But as time passed, the scenario changed totally and over a million homes installed the rooftop solar system so as to reduce their electricity bill.

The state government recently launched many schemes and provide subsidies to those who wanted to switch to solar power. The government offered several loan facilities without charging any interest rates so that people can get solar installation easily. The only thing they have to do is to check whether they are eligible for these subsidies and incentives.

There is no doubt that there are numerous incentives for installing solar batteries and for solar panel ownership. So it might get difficult to assume that how much return they will often get or should expect for installing solar for their homes. There are some myths associated with return on investment, like

• Solar batteries are way more expensive, and their price will eventually decrease over the years, so it is the best option to wait for them to become cheap and they buy it.
• Only installing a rooftop solar system is enough for our home. We don’t need solar batteries to add to the system.
• It is better to stay connected to a grid system rather than install an off-grid system instead.

Let’s talk about the Energy Needs

No matter how do people use solar power for their residential purposes, it is always a better decision to invest in solar. So, it is always good not to believe in mths and do your own research about solar batteries. Take out some time and find out the best suitable solar batteries for your home and what return on investment you are getting out of it.

The best advantage of having solar is that the excess electricity produced will go back to the grid and hence other people can share it with you as well. Apart from this, you will get many financial incentives and several other benefits as well.

Here are some of the points that can be considered while evaluating the ROI for the solar for home.

1. FIT or Feed-in tariff: Feed-in tariff rates are the financial incentives that actually depends on where or in which state you live and your locality. Different states offer incentives depending on your location to utilize solar energy efficiently. The energy retailers pay the homeowners for their excess energy produced. The process involves the retailers buying the excess electricity produced by your system and then feeding it back to the grid. The rates per kWh depend on the retailer as they decide. You can easily relate it to the ROI calculation term, and then you will see that solar panels are actually cost-effective.

2. The pattern of Energy Consumption: Every home has its peak and off-peak hours of electricity usage, and some energy providers offer a low rate for electricity throughout the day. For instance, the peak hour can be considered around 2 pm to 8 pm when all of the members are at home. During the peak hours, the demand for electricity is way more than expected, and it costs often them more to supply electricity during these peaks times. If you do not hold a low electricity rate, then you can calculate it as a part of the ROI so as to get the estimated value.

3. Household Size: It is expected that larger homes with more occupants will eventually consume more electricity as compared to smaller homes. People may assume that larger households will therefore get more ROI than smaller households, but that is not true. As more and more family operates from home or work at home, the energy consumption will increase.

4. Appliances that increase the energy load: Some of the appliances require more energy to run so they consume a large amount of energy. For instance, a swimming pool demands a large part of the electricity and generates large bills. People have already assumed and accepted that the electricity bills will give them a shock after the summer or winter ends as these are the standard part of their utility bills. Additionally, electric vehicles also bring up a notable portion of the bill.

Are home batteries the right option?

It is always a good idea to calculate the ROI for a home battery so as to determine whether it will work for your household requirements. So if you calculate this, you can easily see that the myths around solar for home are just false and story making that does not relate to the actual facts. There are so many factors that can determine specifically how much you can save for the future. It is obvious that you will definitely cut out electricity bills by hundreds of dollars. You can install any reliable energy solutions along with solar panels, and it can help you to reduce the cost by up to around 80% and carry such savings for more than ten years.

Conclusion

Rather than believing in the myths that go around, do your own research and select the best energy solution that will provide you with a great return on investments. Many solar energy providers websites have a free tool that can help you to calculate the exact ROI from a Battery.