Path-Q Solar

What costs should be included when calculating solar ROI?

Answer

Include purchase or financing cost, design and installation, permits, batteries, maintenance, monitoring, insurance changes, inverter or battery replacement, roof work, taxes, and disposal; subtract verified incentives and benefits.

Key points

  • Use the customer's actual contract price.
  • Include opportunity cost when comparing cash investment alternatives.
  • Separate uncertain home-value effects from operating savings.

What it depends on

  • Ownership and financing
  • Equipment life
  • Local taxes, incentives, and insurance

Risks and trade-offs

  • Omitting replacements or financing understates cost.
  • Including speculative value can overstate return.

Information you may need

  • Contract and financing documents
  • Warranty and replacement assumptions
  • Verified incentives

Your next step

What to do next

Build a year-by-year cash-flow table with every cost and benefit labeled as certain, estimated, or speculative.

Path-Q

Find the right next step

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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.

SQ00059