The answer should be around 60 months. Suppose your monthly electrical usage is

Question

The answer should be around 60 months.

Suppose your monthly electrical usage is 950 kWh. You want to use a solar panel system to generate your own power and the solar panels that can produce 240 W costs S250 per panel. There will be an add-on cost of 25% on the cost of the panels for accessories and installation. Assuming that a month is of 30 days and each day you have an average of 5 hours of sunlight, determine number ofmonths that it will take for the solar panel investment to pay off. Energy cost S0.15 per kWh.

Explanation / Answer

Total investment on solar panel = panel cost + add on cost

= 250 + 250*0.25

= 250 ( 1 + 0.25) = $312.5

kWh produced by panels in a month = kW x sunlight hours

= 240 W x kW/1000W x 30 x 5 h

= 36 kWh

Monthly reduction in energy cost = 36 kWh x $0.15/kWh

= $5.40/month

Number of months for the solar panel investment to pay off

= total investment / monthly reduction

= $312.5 / $5.40/month

= 57.87 month

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