Buying solar panels is an investment for the long term, from which you derive the benefits in the short term. Of course, this is an investment decision that should not be taken lightly. Payback time is a valuable indicator to help you make this choice. We explain how to properly understand the return on investment.
Payback time and choice of solar panels
Payback time is a useful concept for determining how quickly an investment pays for itself. This is the time when the cumulative income equals the total investment. For south-east to south-west facing roofs, the payback time in France is between 5 and 10 years. For roofs facing more east or west, the payback time is longer.
However, the concept of payback time provides limited insight into profitability. Are you considering opting for solar panels? We therefore advise you to also include in your criteria the direct savings made each year on the energy bill, the cost price per kilowatt-hour generated and the income you recover once your investment has made a profit. After all, your solar panel installation will last at least 25 years.