Formula
Net cost = installed cost − incentives. Annual net benefit in year n = (savings − operating cost) × (1 − degradation)^(n−1).
Payback is interpolated within the first year when cumulative benefits equal net cost.
What the result means
The result estimates when cumulative declining net benefits recover the net upfront investment.
Planning estimate only. Confirm equipment limits, degradation, auxiliary consumption, site conditions, tariffs, financing, tax treatment, and safety requirements with qualified professionals.