This is an awkward question.

So let’s say you buy a solar panel and it costs you $ 750, and at the current price of electricity (and other factors), it will take x years for the solar panel to SAVE you $ 750 on your electricity bill, thus paying for itself.

What is this phenomenon or duration of time called?

I guess you could compare it to “breaking even”, except you were not investing money for the purpose of making money. You were investing money for the purpose of saving money.

Best answer:

Answer by C Anderson
In business, you’d call it amortization. To simplify, it’s the process of spreading your cost over a number of years.

In this case, if the panel lasts long enough, you wind up amortizing your cost over the number of years it takes you to recover in “free” electricity

a) the initial $ 750 purchase/install price, plus
b) the interest you didn’t make on the $ 750 over that number of years (the “value” of your money), plus
c) any maintenance costs.

less

d) any government rebates or tax incentives available at the time. If you’re lucky, they’ll be providing these when you decide to install.

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