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How is the Payback Period Calculated in Station A's building analysis?

We estimate the payback period of a project by calculating the number of years it will take for electricity bill savings to cover the upfront cost of building a solar system, net of tax credits and other incentives.

For example, a system that costs $1.2M and offsets 100% of a $10k/mo electricity will have a payback period of 10 years. Given a specific building’s predicted electricity consumption pattern, tariff rates, and installation area, we use our proprietary algorithms and data to size a system that balances the estimated savings from electricity bills with the build costs for adding additional panels, in effect to minimize the payback period.