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Originally Posted by retiredguy123
I think solar panels are great if you are doing it for the environment, but I am skeptical about the economics. I would be interested in knowing who calculated the 10 year payback period and what it includes. Does it include the lost 10 year investment value for the upfront cost? What rate of return was used? Does it include projected future electricity costs? Does it include repairs and maintenance, especially if you have a roof leak? Are the panels covered by a homeowners policy? I would also like to know how the solar panels affect the market value of the house. It would be interesting to hear an experienced Realtor's opinion about that. An interesting topic.
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About 3 o4 years ago the payback was mentioned at 11 years by a few people. Costs are probably a little lower now. But I calculated about 13 years to 18 years. 18 years included 5,000 for maintenance and repairs - primarily cost of removing for a new roof. Did not increase or decrease electric rates. Add $60 or so in annual insurance costs. I compared the return to the interest I could earn on a bond (5 to 6% not what they pay now). I sort of concluded it might be a breakeven but investments in stock could (or maybe not) do better.