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What is the payback period?

Payback period
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What is the payback period?

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Payback is direclty related to your system size and configuration. We assume that energy costs remain the same over time (a conservative assumption). Most grid-tie systems with a rebate will break even after 4-9 years depending on usage and peak power consumption. Non-rebate systems can take anywhere from 9-16 years to fully repay.

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A wind system will usually recoup its investment through utility savings within 6 to 15 years and after that the electricity it produces will be virtually free. Over the long term, a wind turbine is a good investment because a well-sited wind system increases property value, similar to any other home improvement. Many people buy wind systems in preparation for their retirement because they don’t want to be subject to unpredictable increases in utility rates.

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The following is provided by the CT DPUC in docket 05-07-17 page 22. It is recommended that anyone considering a self generation project read this entire document in detail. The typical pay back period for sites reviewed so far by USPP is under five years. However, a more detailed analysis will be provided for your site.

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