Solar Hot Water Systems - When's the payoff on your purchase?

Payoff payoff payoff, what do we mean by payoff. Everyone asks when will their new solar hot water system payoff. First it’s important to consider that a solar hot water or electric system might be among the few things that actually pay off at all. New windows seldom do, granite countertops and swimming pools never will, a new car only looses value, a new oil burner might save some money but will never get to a point where operating it will cost nothing at all. What really matters are two critical numbers. What is your return on investment through the “payoff” period, and how much money will it save you over an extended period of time.

The graph below shows the 20 year cash flow for a system that costs $10,000.00 and receives a 30% federal tax credit plus a $2600.00 NH state rebate. Assuming this system replaces 191 gallons of oil per year and the cost of oil increase 8% per year (which is the 25 year average according to the US Energy Agency from their Northern New England data.)

The data looks something like this:

 

So this system will “payoff” in about 5 years. Some might argue that it takes too long, however, that represents a 20% annual return on your investment. I don’t think you can find that kind of return anywhere in the marketplace. But that’s just the small potatoes. Look at the savings over 20 years. Yup that’s right, close to $30,000.00 in savings. No granite countertop can deliver that kind of return!

So give us a call and share your thoughts.

Consider that a solar hot water or electric system might be among the few things that can actually pay for themselves.

New windows seldom do, granite countertops and swimming pools never will, a new car only looses value, a new oil burner might save some money but will never get to a point where operating it will cost nothing at all.

When you choose to save energy, we think you'll save money...you'll also save energy such as fossile fuels and electricity.