Payback period of solar panels.

Performing a photovoltaic project provides multiple benefits, both ecological and economic. However, installing solar panels is still a significant investment that is gradually recovered, so it is not surprising that knowing the payback period of this expenditure is one of the key points to study before embarking on a project of this nature.

The time it takes to amortize a self-consumption photovoltaic installation is usually around 5 or 6 years. However, there are a number of factors that can lengthen or shorten this period. We will explain each of them in detail below.

Your energy consumption.

Although it may be obvious, it is necessary to point out that the more energy you consume, the longer it will take to amortize the solar panels, while the more you save, the sooner you will recover the investment. This is because even if you have your installation, you still need to pay the electricity bill.

With solar panels, you can save up to 70% on your electricity bill. But if you consume a lot of electricity at home, especially during the hours when your panels are not producing, your bill will increase. That is, there will be savings, but they will be less.

Your photovoltaic installation.

Apart from your energy consumption, the characteristics of the photovoltaic elements you install will also influence the amortization period.

In principle, the more panels you install, the more energy you will produce and the less you will have to depend on the electrical grid. But don’t forget that, logically, the initial investment will also increase, so you will have to assess which power is most interesting to install according to your needs.

The use of batteries.

If you add batteries to your photovoltaic installation to store excess energy, the savings on your electricity bill will be much higher, as you will considerably reduce the supply from the electrical grid.

However, batteries represent an extra investment that can significantly increase the initial budget of your project. Like the number of panels, it is a matter to consider.

Market prices.

Photovoltaic installations are currently being amortized much faster than a few years ago. This is because, on the one hand, solar panel installations have become significantly cheaper, and on the other hand, electricity prices have skyrocketed.

In the face of this situation, with cheaper panels and more expensive energy, it is now tremendously profitable to install solar panels.

Excess compensation.

 Another saving factor to consider when calculating how long it takes to amortize solar panels is excess compensation.

The difference between installations with and without excess is that if you opt for excess compensation, you can receive an economic compensation for the energy you produce and do not consume. With this system, during daylight hours, your panels can be producing and dumping the energy you don’t use into the grid, and in return, you will receive an economic compensation on your bill for when you consume energy from the electrical grid.

Grants and subsidies.

For some time now, governments and European governments have been incentivizing the use of renewable energies as a tool to reduce CO2 emissions.

When calculating how long it takes to amortize solar panels, in addition to assessing the initial investment, the estimated energy consumption, and market prices, it is decisive to take into account the grants and subsidies that we can receive for our installation, which provide significant savings that will help us reduce the payback period.

At this time, the most substantial subsidies available come from the European Next Generation funds. If obtained, they can represent savings of up to 50% of the total cost of the installation. However, the funds are limited and are granted on a first-come, first-served basis, so it cannot be guaranteed that we will be awarded them.

Other bonuses, which depend on the municipalities of each city, are reductions in taxes