Everyone aims for a return on investment, even getting your home solar powered. Installing a residential solar power project can be expensive. This is why most people wonder if it does pay off in the long run.

If you’re one of the people who have a hard time deciding if they should invest in residential solar power projects, then this one’s for you. In this blog, we’ll reveal the truth behind the ROI of a solar-powered home.

How much do residential solar projects cost?

To determine the ROI of a solar-powered home, we must first know its initial cost.

The overall cost of a residential solar power project depends on the target electricity produced every day. If you want to create a more significant amount of electricity, you’d have to buy more solar panels, bigger solar batteries.

As of this writing, solar panel installation costs a national average of $18,500 for a 6kW solar panel system for a 1,500 square ft. home. The price per watt for solar panels can range from $2.50 to $3.50 and largely depends on the home’s geographical area. Residential solar panels are usually sized at 3kW to 8kW and can cost anywhere from $9,255 and $28,000 in total installation costs. 

Do residential solar projects pay off?

Yes. Residential solar projects pay off. It has a good potential for an ROI.

The first thing that we have to consider is the lifespan of a solar panel project. If installed correctly and maintained properly, solar power projects can last up to 30 years. 

According to recent data, an average household uses 40-kilowatt hours per day. Say that your solar panel project produces an average of 10-kilowatt hour per day, then you can reduce up to 25% on your daily electricity bill. 

As of this writing, 10-kilowatt hour energy consumption costs $28 per day. If your initial capital is at $18,500, you can get your ROI in more or less two years.

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