How to estimate ROI for a solar system on a tiny house?

System Sizing and Cost

To estimate the ROI of a solar system on a tiny house, determine the system’s energy requirements first. A typical tiny house uses between 200 and 800 kilowatt-hours (kWh) per month. To size the system, consider the house’s energy needs, available roof space, and local sunlight. For example, a 300 kWh/month tiny house with a 200 square foot roof may require a 2 kW solar panel array. The system’s cost includes the panels, inverter, mounting hardware, and installation, which can range from $15,000 to $30,000, depending on the system’s size and quality.

Energy Production and Savings

Calculate the solar system’s energy production using the array’s wattage, sunlight hours, and location. A 2 kW solar panel array in a sunny location like Arizona can produce around 6,000 kWh per year. Compare the system’s production to the house’s energy needs to ensure it meets the requirements. The annual savings from reduced energy bills can be estimated by subtracting the system’s production from the house’s energy usage. For instance, if the house uses 3,600 kWh per year and the solar system produces 6,000 kWh, the annual savings would be $600 per year, assuming an electricity rate of 17 cents per kWh.

Local Incentives and System Maintenance

Local incentives, such as tax credits, rebates, or net metering policies, can significantly impact the ROI of a solar system. Research and factor in these incentives when calculating the system’s cost and savings. Regular system maintenance is crucial to ensure optimal performance. Scheduling annual inspections and cleaning can prevent panel degradation, reduce energy losses, and prolong the system’s lifespan.