Economics of Solar Energy

State	% Avg electric bill increase since 2005
Arizona	44%
California	45%
Colorado	33%
Connecticut	67%
Hawaii	66%
Maryland	76%
Massachusetts	61%
New Jersey	48%
Nevada	32%
New York	35%
Oregon	46%

 

Getting solar panels for your home is a great way to lock in low solar electricity rates so that you know what what you'll be paying, and you'll protect yourself from unpredictable utility rate increases.

Solar Panel Return on Investment and Payback

Going solar with Sunrun offers a better ROI and faster solar power payback than purchasing a residential solar system. This is because the upfront costs are lower with Sunrun. With an initial investment of as low as $0, the savings on your monthly electric bill can add up much more quickly to surpass your original investment.

You may even start generating returns on your investment as early as month one.

• Return on Investment (ROI): The ratio of money gained in an investment (in this case, a solar system) relative to the money invested (with Sunrun, this can be as little as $0). Solar ROI is usually expressed as a percentage.
• Internal Rate of Return (IRR): Used to measure and compare the profitability of investments. This calculation does not take outside factors into consideration, such as interest rates or inflation. The higher the IRR, the better the investment is.
• Payback: Time needed for the return on investment to “repay” the sum of the original investment. This measures how long something takes to “pay for itself.” Since you can go solar with Sunrun, for as little as $0, this means your payback period is much faster than if you paid for the system yourself.

Property Value

Investing in solar can also increase your home’s value and help your house sell faster. According to a recent 2014 study by the Lawrence Berkeley National Laboratory, solar panels add about $4.00 per watt to resale value for homeowner-owned systems. This means that an average sized system can add up to $15,000 to your home's value.***